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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