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Please ensure that you bring all  original documents. View the information below to identify which documents apply to the account you wish to open.

Please ensure that you bring all original documents.

1. Your Original South African bar-coded identity document/valid passport (for Foreign nationals & Non-residents) or a certified copy of those of your guardian/curator (for minors, insolvents and legally incapacitated persons)
2. For Non-residents, a work/study/temporary residence permit and contract with the relevant business/educational institute, or a Section 22, 24 or Department of Home Affairs refugee ID (plus a Declaration by Non-Resident Opening Bank Accounts in South Africa); and an Introduction letter from your foreign bankers
3. A utility bill verifying your residential address, which is not older than three months and that of your guardian/curator (for minors and legally incapacitated persons)
4. Letter of executorship and death certificate of the diseased (for Estate Late accounts); or a letter of curatorship (for Insolvents & legally incapacitated persons); or FIC Act Exemption four certificate (Declaration by Attorney Investing Funds on behalf of a Client)
5. Completed W-8BEN form or W-9 form (for US Citizens/Residents/Green Card Holders/US Taxpayers)
6. In case of having been born in the US or a US Territory, but believe that you are not a “U.S. Person” under U.S. tax principles supply a copy of your Certificate of Loss of Nationality, a W-8BEN form and a copy of your non-US passport
7. In case of other US indicia (US Telephone Number, U.S. Postal/E-mail Address), complete & sign a W-8BEN form & Non-US Passport/Residence/Study/Work Permit/Government Issued ID
8. South African Revenue Service document reflecting your South African income tax number (if registered)
9. Specimen Signature Card (to be provided by the bank)
10. Third party mandate for additional signatory(ies), if applicable
11. Original South African bar-coded identity document/valid passport of the additional signatory(ies) or a certified copy of his/her South African bar-coded identity document/valid passport
12. If third party signatory(ies) is/are a US person(s), account holder to complete W-8BEN from and provide Non-US passport/Residence/Study/Work Permit/Government Issued ID and
13. Utility bill verifying the residential address of the additional signatory(ies), which is not older than three months

For more information on the Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) click here

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Islamic banking is defined as a banking system that aligns with the spirit, ethos, and value system of Islam and is governed by the principles laid down by Islamic Shariah. In practical terms, Islamic banking transforms conventional money lending into financial transactions that are based on or backed by tangible assets and real services. Islamic banking is a fast-growing phenomenon in the global financial markets. There has always been a demand among Muslims for financial products and services that comply with Shariah (Islamic law). Based on this demand, numerous banks worldwide have started offering products and services that are in compliance with Shariah principles.

Shariah refers to the revealed principles found in the Quran and Sunnah (the traditions of Prophet Muhammad (PBUH)) that govern and regulate all aspects of Muslim society. Shariah encompasses all facets of Islamic life, including beliefs and practices.

The main difference between Islamic and conventional banking is that Islamic banks prohibit interest (Riba). Unlike conventional banks, Islamic banks focus on trade (buying and selling) transactions and partnerships. In Islamic banking, wealth is generated through legitimate trade and investments.

“Sirat” is an integral part of HBZ Bank Limited and represents our global brand for Islamic and Shariah-compliant banking. Its funds and operations are segregated to comply with regulatory and Shariah requirements.

The fact that it is under the same roof does not imply that Islamic banking and conventional banking are the same. In HBZ Bank Ltd, South Africa, Shariah-compliant funds and books are completely segregated from conventional ones. The brand name “Sirat” is expected to increase market awareness regarding HBZ’s strategy, which focuses on this rapidly growing and evolving sector.

The name “Sirat,” meaning “Path” or “Direction,” resonates strongly with the Bank’s core values. Additionally, as an acronym, “SIRAT” represents the centuries-old legacy of the Habib family:

• S – Security
• I – Integrity
• R – Reliability
• A – Accessibility
• T – Trust

The branding of HBZ Bank’s Shariah banking under the name “Sirat” clearly distinguishes the product from the conventional banking offered by the Bank. Hence, it reinforces confidence and allows customers to make informed decisions when choosing their desired products, ensuring they are Shariah-compliant.

Islamic Banking operations are supervised by a Shariah Advisor, who has knowledge about Shariah, and is based in South Africa.

Riba refers to anything over and above the principal, without any due consideration already stipulated in the contract. Therefore, rent and profit from sales, although fixed and pre-decided, are not considered Riba/Interest.

Islamic banking is inclusive and welcomes customers regardless of their religious affiliations. “Sirat” is available to individuals from any religion, race, or community. However, certain businesses engaged in non-Shariah-compliant activities will not be allowed to open accounts or conduct transactions through the Islamic banking window of HBZ Bank Limited (please refer to Question No. 14 for details).

Under the brand name “Sirat,” clients can be assured that their personal and business banking needs will be met with solutions that comply with authentic Shariah guidelines and principles, governed by the best international practices in line with our Group’s guidelines.

There are at least six basic principles considered when executing any Islamic Banking transaction. These principles differentiate a financial transaction from a Riba/Interest-based transaction to an Islamic Banking transaction.

1. Sanctity of contract: Before executing any Islamic Banking transaction, the counter parties must verify whether the transaction is valid according to Islamic Shariah. This means the transaction must not be invalid or voidable under Shariah Law
2. Risk sharing: According to the sayings of Prophet Muhammad (SAW), Islamic jurists have derived that no profit can be earned from an Asset or Capital unless the earner has taken ownership risks. In Islamic Banking, both the financial institution and its deposit holders take the risk of ownership of Tangible Assets, Real Services, or Capital before earning any profit from them
3. No Riba/Interest: Islamic Banks cannot engage in Riba/Interest-related transactions. They do not lend money to earn additional amounts but generate profit by taking risks with Tangible Assets, Real Services, or Capital and pass this Profit or Loss to their deposit holders, who also share the risk of their Capital
4. Economic purpose/activity: Every Islamic Banking transaction serves a clear Economic Purpose or Activity. Moreover, Islamic Banking transactions are backed by Tangible Assets or Real Services
5. Fairness: Islamic Banking encourages Fairness in its operations. Transactions with dubious terms and conditions are not permitted within Islamic Banking. All terms and conditions embedded in transactions are properly disclosed in the contract/agreement
6. No invalid subject matter: When executing an Islamic Banking transaction, it must be ensured that the subject matter or activity financed by the Islamic financial transaction is not invalid under Shariah Law. Some activities may be allowed by civil law but prohibited by Shariah and cannot be financed by an Islamic Bank

The validity of a transaction does not depend on the end result, but rather the process and activities undertaken, as well as the sequence in which they occur to reach the end result. If a transaction is conducted in accordance with Islamic Shariah, it is considered Shariah-compliant, even if the final result of the product may appear similar to a Conventional Banking product. The contracts and product structures used by Islamic Banks are fundamentally different from those used by Conventional Banks.

At HBZ Bank Limited, we strive to provide financial solutions that meet the needs of our customers. HBZ offers Islamic Banking products and services that combine our financial expertise with your enduring values.

The following products are available for both Consumer and Corporate segments:

1. Banking Accounts: Current Accounts, Savings Accounts
2. Term Deposits: Islamic Investment Certificates Accounts
3. Personal/Business Banking: Murabaha Finance, Diminishing Musharakah
4. Trade Finance: Issuance of Letters of Credit, Import Murabaha Financing, and Shariah Foreign Exchange Cover

HBZ Bank Limited offers Current/Savings Accounts and Term Deposit Accounts in ZAR (South African Rand) only.

You can apply for and avail Sirat Products and Services through any of the HBZ Bank branches in South Africa.

Under the Islamic Banking window – Sirat, we will not open accounts for entities involved in the following activities:

1. Trading/sale of Alcohol, Liquor, Wine, Beer, etc.
2. Trading/sale of Cigarettes, Tobacco, Paan, Dokha, Cigarettes, Khat, and Hookah
3. Trading/sale of Meats considered prohibited, such as Pork, Dog, Cat, Monkey, or any other prohibited animals
4. Cinemas & Music Centres
5. Gambling
6. Tattoos
7. Hoarding
8. Usury-based lending

No, Islamic deposits will only be used by the Bank in Shariah-approved activities.

Murabaha is the sale of goods ordered by the buyer/customer, with a price that consists of the cost plus a promised profit margin, paid in deferred installment payments. Islamic Banks have adopted this as a mode of financing. As a financing technique, it involves a request by the client for the Bank to purchase certain goods on their behalf. The Bank does so for a definite profit over the cost, which is stipulated in advance.

The following rules govern a Murabaha transaction:

1. The subject matter of sale must exist at the time of sale. Anything that does not exist at the time of sale cannot be sold
2. Cost and profit must be known and declared by the seller
3. The subject matter must be in the ownership of the seller, either actual or constructive, at the time of sale
4. The sale must be instant and absolute, a sale attributed to a future date or contingent on a future event is void
5. The subject matter should have value
6. The subject matter of sale must not be intended for an un-Islamic purpose
7. The delivery of the sold commodity must be certain
8. The price must be certain
9. The sale must be unconditional unless the condition is recognised as part of the transaction

No, the goods are not insured by the Bank. The original warranty or guarantee provided by the supplier remains in place.

Yes, in a Murabaha sale, the seller must disclose both the cost and the profit.

Murabaha profit can be calculated using any agreed-upon method, but once the agreement is signed, the terms cannot be altered.

Diminishing Musharakah (DM) is also known as declining partnership. It is a contract where two partners (the Bank and the customer) jointly purchase an asset or property, and over time, the customer acquires full ownership by gradually buying out the Bank’s share.

Under DM Finance, both the Bank and the customer jointly own the property according to their respective shares. The customer will eventually assume full ownership upon settling the Bank’s share.

Using interest rate benchmarks to determine profit does not invalidate Islamic transactions. What determines the validity of a transaction is its compliance with Shariah principles, not the use of interest rate benchmarks.

No, Islamic banks accept deposits either on a profit and loss-sharing basis or as Qard (loan) and deploy these deposits in Shariah-compliant financing, trading, or investment activities. The profit earned is shared with depositors according to the respective agreements, meaning it cannot be considered as interest (Riba).

No, the Bank will not charge extra profit if there is a delay in payment.

HBZ Bank invests in Shariah-compliant asset products, such as Murabaha and Diminishing Musharakah. Additionally, the Bank places funds with other financial institutions that provide fully Shariah-compliant investment avenues within South Africa.

Our products are reviewed, approved, and certified by a Shariah Advisor in compliance with Shariah principles. Additionally, we conduct a regular Shariah review to ensure continuous adherence to Shariah guidelines and best international practices.