Exposure Draft on Shariah GovernanceRelease Date: 13 Nov 2017
This exposure draft outlines the Bank’s proposals for enhancements to the existing regulatory requirements and expectations on Shariah governance for Islamic financial institutions. This paper aims to strengthen the effectiveness of Shariah governance implementation within Islamic financial institutions in response to the growing scale and complexity of Islamic financial business as well as recent policy developments in the area of governance, compliance and risk management.
Key enhancements to the framework include the following:
- strengthened board oversight on accountability and responsibilities over Shariah governance;
- enhanced requirements for the Shariah committee in providing objective and sound advice to Islamic financial institutions, in line with the Islamic Financial Services Act 2013 (IFSA);
- enhanced expectations for the board and senior management to promote a Shariah compliant culture and further integrate Shariah governance considerations in business and risk strategies; and
- enhanced regulatory expectations on the quality of internal control functions to ensure effective management of Shariah non-compliance risks.
The Bank invites written feedback on the proposed regulatory requirements. Responses must be submitted to the Bank by 11 December 2017 to firstname.lastname@example.org.
Further details can be found in the following documents:
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