The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) in the 34th meeting of its Governance and Ethics Board (AGEB / the board) held on December 28, 2023 at AAOIFI head office in the Kingdom of Bahrain approved the issuance of six exposure drafts (EDs) of governance standards (GSs). These EDs are the outcomes of the comprehensive Shari’ah governance framework project, which is aimed at establishing the guiding principles and rules, as well as, best practices for a sound and effective Shari’ah governance framework for Islamic financial institutions.
The EDs of GSs as approved by the board include the following:
- [ED (AGEB 2/2023) of the] AAOIFI GS — “Shari’ah Governance Framework”;
- [ED (AGEB 3/2023) of the] AAOIFI GS — “Shari’ah Supervisory Board: Appointment and Composition”;
- [ED (AGEB 4/2023) of the] AAOIFI GS — “Shari’ah Supervisory Board: Functions and Operations”;
- [ED (AGEB 5/2023) of the] AAOIFI GS — “Shari’ah Supervisory Board: Review and Report”;
- [ED (AGEB 6/2023) of the] AAOIFI GS — “Application of Shari’ah Governance Principles to Islamic Finance Windows”; and
- [ED (AGEB 7/2023) of the] AAOIFI GS — “Application of Shari’ah Governance Principles to Islamic Finance Subsidiaries / Associates”.
The chairman of the AGEB, Mr Farrukh Raza, stated that “I would like to thank the board members, the relevant working group and the secretariat for their devotion and commitment to the development of these exposure drafts”. He added that “I expect these exposure drafts once finalized will improve the level of Shari’ah compliance in the Islamic finance industry and improve the quality of Shari’ah governance”. http://tinyurl.com/3x74x5w5
Source: IBP