Continuation
Typically, a
fully-fledged IIFS (Institutions Offering Islamic Financial Services) will have its own Shari’ah committee/advisers.
Usually Shari’ah
committee or advisers advise on all Shari’ah-related matters.
They also guide
the Governing Board and others on matters related to Shari’ah compliance.
They oversee Shari’ah-related issues:
-
from product development
-
to execution.
In addition,
being a fully-fledged entity helps ensure that:
-
there is no “leakage”
of Islamic funds to non Shari’ah-compliant activities
-
and no
commingling of:
o
Islamic and
o
conventional
funds.
From the research paper of
European Central Bank
(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho,
B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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