Monday, March 5, 2018

Islamic finance in Europe (149)


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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