UAE’s higher shariah committee has issued resolution that all the IFIs will be bound to follow AAOIFI’s Shariah Standards effective from 1/9/2018.
Following is the full resolution:
After greetings,
The Higher Sharia Authority (HSA) at the Central Bank, resolved that:
“1. The Sharia Standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), shall be binding on the Internal Sharia Control Committees (ISCC) of the Financial Institutions that preform all or part of their activities in accordance with Islamic Sharia rules (IFIs) from 1/9/2018 onwards.
These Sharia standards represent the minimum Sharia requirements for IFIs in all their activities and operations without exception. This is applicable for all existing AAOIFI Sharia standards and standards that will be amended or issued by AAOIFI.
The ISCCs must comply with these Sharia standards in all of their Fatwa issuance and adoption, approvals, and recommendations in any form.
2. The products, activities and services adopted and currently used by IFIs prior to this resolution should be revised in accordance with AAOIFI Sharia Standards
based on a time plan that should not exceed by 31/12/2020.
3. IFIs are required to submit their detailed required revision plans to the secretariat of HSA no later than 31/12/2018.
4. The Annual Sharia compliance report submitted to the HSA by the ISCCs should confirm compliance with AAOIFI Sharia Standards as mentioned above.
5. In case the ISCC thinks that there is a need not to comply with the AAOIFI Standards, the IFI’s management should submit the matter to the HSA for their resolution regarding the matter prior to the ISCC’s approval. The submission should be accompanied with clear reasoning for the non-compliance and the Sharia evidence supporting the ISCC’s view on the matter.”
For more information, you may contact the HSA Secretariat via the following email:
shariaauthority@cbuae.gov.ae
Click here to download the resolution copy:
Muhammad Ziaurrahman 