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Purchase Of Murabaha Asset
If the client acts as an agent in a Murabaha, can the Murabaha asset be purchased by the client before he becomes the agent?
The Murabaha asset may only be purchased by the client after he becomes the bank’s agent. If the asset is bought before, it will be considered a buy-back transaction, which would be prohibited. In order to ensure that the client as agent makes an actual purchase of the Murabaha goods, the bank must issue a pay order in the supplier’s name, receive an invoice from the client confirming the purchase, and carry out a visual inspection of the goods.

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