Non-compliance with Shariah by the institutions offering Shariah-compliant products can have serious implications and reputational risk. See our section on Shariah-non compliance risks.
According to the Accounting and Auditing Organization for Islamic Financial (AAOIFI) guidelines, every entity involved in Islamic finance should perform a yearly Shariah auditing on its Islamic finance products to ensure their contact compliance with Shariah guidelines.
Shariah Auditing is the process by which a Shariah Auditor reviews, on periodic intervals, the structure and the implementation of a Shariah-compliant product to determine whether the recommendations of the Shariah Supervisory Board and the Fatwa have been followed. The Shariah auditing which can be either quarterly or biannual based on the client's preference.
- Shariah Auditing Procedures Manuals for the purpose of supporting the internal Shariah monitoring.
- Periodic Shariah auditing and Monitoring
- Performing external Shariah auditing and reporting to the management and the Shariah Supervisory Board
- Advising on the Shariah-compliance risk identification, reputational risk and risks management
- Advising on Shariah corporate governance in order to enhance transparency and creating value by assessing the Shariah risk management and enhancing internal control management functions.
- Update and explanation in respect with Islamic finance development in your preferred selected countries or sectors and also in respect of any Shariah, legal and financial developments.
- Shariah Co-ordination Services (between scholars and financial institutions)
- Islamic finance training (in cooperation with Utrujj Foundation)
- Purification strategies
Our one stop shop team will work with your team to provide a tailored approach for your needs.