DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 72 21. Due to customers, banks and other financial institutions 2017 2016 Customer current accounts Individuals 692,342 663,081 Financial institutions 2,558 2,405 Corporate institutions 1,076,600 915,626 Customer investment accounts Individuals 846,293 979,790 Financial institutions 835,834 857,177 Corporate institutions 987,820 1,153,617 Investments from off balance sheet funds 3,181 28,285 Due to banks and financial institutions 1,147,991 1,150,113 5,592,619 5,750,094 Customer current accounts include balances relating to a counterparty amounting to USD 215.6 million (2016: USD 187.8 million) which was subject to sanctions under US, EU and UN measures. The remaining due to customers represents conventional deposits accepted by a subsidiary of the Group. Due to banks and financial institutions include balances totalling USD 432.1 million from two counterparties (2016: USD 417.2 million) which were subject to sanctions under US, EU and UN measures and having contractual maturity ranging to up to one month as at 31 December 2017. As at 31 December 2017, there were collateralised borrowing in aggregate USD117.7 mn (31 December 2016: USD 134.5 mn). Due to banks include short and medium term borrowings by the Group under bilateral and multilateral arrangement with maturities ranging from one year to five years. 22. Provisions Included under liabilities are the following provisions: 2017 2016 (Restated) Funds under management guarantee* 62,491 62,491 Other provision 5,826 5,826 68,317 68,317 * It includes provision related indemnity agreement. As per the indemnity agreement dated 12 April 2011, IICG a related party, acting as Modareb for funds managed by it was induced to purchase certain assets from another related parties for a value which exceeded the fair value by USD 55 million as at that date. DMI has given an unconditional and irrevocable guarantee to IICG funds under management (IICG FUM) for this fair value difference of USD 55 million. This obligation under the indemnity agreement will remain inforce till assets are liquidated and the IICG FUM can request indemnity for USD 55 million during the term of the agreement.