CBUAE Standard re Shari'ah Compliance Function at Islamic Financial Institutions

Article (1)

Introduction

1.1 This Standard Re Shari'ah Compliance Function at Islamic Financial Institutions (“the Standard”) complements the Standard re Shari'ah Governance for Islamic Financial Institutions (“the Shari'ah Governance Standard” or “SGS”) with the aim to promote the development of the banking system and to ensure its effectiveness and efficiency.

1.2 The licensed financial institutions that conduct all or part of their activities and businesses in accordance with the provisions of Islamic Shari'ah (“Islamic Financial Institutions” or “IFIs”) must establish Shari'ah governance policies and governance mechanisms to ascertain compliance with requirements outlined in the Standard and requirements outlined in the relevant regulations, standards, resolutions and other notices issued by the Central Bank and by the Higher Shari'ah Authority (“HSA”) in relation to compliance with Islamic Shari'ah (“Regulatory Requirements”).

1.3 W...