REGULATIONS - AAOIFI issues three new Shari'a standards

The accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), the international organization that formulates and publishes, accounting, auditing, ethics, governance and Shari'a standards for the Islamic banking and finance industry, issued three new Shari'a standards, namely "Contemplation Option", "Defects Option" and "Honesty Option".


Commenting on the issue of these new standards, Secretary General of AAOIFI, Dr. Mohamad Nedal Alchaar, said, "The adoption of these new standards by AAOIFI Shari'a Board came after careful and indepth study in the same way as all other AAOIFI Shari'a standards are reviewed and assessed before issuance. The purpose of these standards is to seek setting Shari'a requirements and rules for the different modes of investment, insurance and financial services and provide interepretation for such requirements and rules."

Dr. Alchaar added, "AAOIFI has so far issued more than 80 Shari'a standards as part of its efforts to formulate more and more new standards and review the previous ones, with a view to meeting the new requirements and needs of financial and banking institutions. Conforming to AAOIFI standards is now considered by Islamic banks as part of their adherence to the Islamic Sharia principles in their operations. Furthermore, AAOIFI standards are used as useful guidelines in certain countries that do not require Islamic banks to adhere to them."

Dr. Alchaar pointed out that AAOIFI standards are adopted by more than 90% of Islamic banks around the world.

The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an international autonomous not-for-profit organization whose role is to develop accounting, auditing, ethics, governance and Shari'a standards for Islamic financial institutions.

Source : http://www.ameinfo.com/243318.html - Sept 28, 2010