The regulatory landscape of Islamic financial sectors is evolving across the GCC countries, boards must be able to navigate the challenges and opportunities in governing Sharia compliance. As part of their fiduciary duties to adhere to local laws and regulations, boards of Islamic financial institutions are now responsible for developing, maintaining and overseeing effective Sharia governance systems. This requires board members to be fully aware of their individual and collective responsibilities, be able to make informed decisions impacting matters of non-compliance and be supported by a strong Sharia governance framework. With legal, regulatory and Sharia standard requirements constantly being updated and varying between jurisdictions, boards are expected to juggle the needs of Sharia compliance for diverse stakeholders in an increasingly interconnected world.
Helping Directors govern Sharia compliance. Across financial sectors. Across the GCC.
We have a wealth of experience in all aspects of Sharia governance framework. Licensed by the Central Bank of Bahrain, we can help board’s by collaborating with Sharia committee’s to help find solutions to complex product designs, develop Sharia audit plans that improve Sharia control objectives, review Sharia compliance department’s composition and skill sets, and advise on best practices in light of variant Sharia rulings, evaluate the Sharia control policies and procedures, as well as provide Sharia assurance in light of international standards (ISAE 3000).
“Today nearly all regulators in the GCC demand high standards of Sharia governance requiring boards to balance the interests of multiple stakeholders and underpin a robust framework for achieving growth in business in light of Sharia principles and standards. The effective implementation of these standards are now the responsibility of the Board of Directors.”
How can we help?
Having served the Islamic financial industry for over 15 years, we can help by:
- Providing you with an expert assessment of your Sharia governance framework, its effectiveness and opportunities for improvement;
- Recommending appropriate Sharia controls and processes to meet regulatory requirements and Sharia Committee directives;
- Developing tailor-made Sharia audit covering all key factors under the Sharia governance framework, so that your board, on a periodical basis, can have in-depth knowledge of the status of Sharia compliance and weaknesses in the system;
- Undertaking evaluations of Sharia committee and Sharia auditor members so as to identify areas of strength and weakness in skills, knowledge, composition, stakeholder engagement and non-compliance risks.
- assist in monitoring through Sharia assurance using international standards (ISAE 3000).
- undertake Sharia auditor’s training around products, planning, fieldwork, and Sharia governance to allow them to assist boards to meet their fiduciary responsibilities around Sharia governance.
Every board is unique, this is why we work with your board to identify, customize and deliver the services you need. Our offerings include:
- Sharia Governance audit
- Attendance at regular board meetings to covers matters related to Sharia governance and compliance
- Oversight of delegated functions like Sharia audit, Sharia control, Sharia Committee or all of these combined together
- Sharia Committee evaluation
- Board induction and orientation, particularly executive management responsibilities and duties around Sharia compliance
- Board’s training on products and areas of non-compliance
- Changes to key personnel responsibilities or delegation of authority in line with Sharia governance framework
- Sharia product and audit training
- Discharge of Sharia governance duties through appropriate involvement in corporate activities
- Provision of alternate Sharia opinions, when required
We’re ready to help take on your most pressing Sharia governance challenges. Reach out and start a conversation. Contact us today!