An Introduction to Islamic Finance: Theory and Practice

341

TABLE 15.2

Shari’ah

• compliance: practices and framework

Country

Islamic Banking Law

Shari’ah

Committee

Fit & Proper Criteria for Shari’ah

Adviser/ Committee

Shari’ah

Compliance Inspection

Shari’ah

Standards

Accounting Standard

At Central Bank

At Bank Level

Malaysia Islamic Banking

Law 1983

Shari’ah

Advisory

Council

Shari’ah

Committee

Approval by

Bank Negara Malaysia (BNM)

Governance

through Shari’ah

Committee

All Products

approved by SAC. Role of

Shari’ah

Committee defi

ned by

BNM

Accounting

Standards developed by Malaysian Accounting Standards Board

Bahrain Regulations for

Islamic Banks

Shari’ah

Supervisory Committee

Shari’ah

Supervisory Board

N.A Internal and

External Shari’ah

Audit

as per AAOIFI standards

AAOIFI AAOIFI

Indonesia

Laws for Islamic

Banking introduced in 1992 and amended in 1999

National

Shari’ah

Board

Shari’ah

Supervisory Board

NSB approves

appointment of SSB members

Internal and

External Shari’ah

Audit

Fatw

a on products

issued by NSB

AAOIFI

(Continued

)