AAOIFI issues new Sharia standards
Manama, September 29, 2010
The Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has issued three new Sharia standards.
They are the contemplation, defects and honesty options.
"The adoption of these new standards by AAOIFI Sharia board came after a careful and in-depth study in the same way as all other AAOIFI Sharia standards are assessed before issuance," said secretary-general Dr Mohamad Nedal Alchaar.
"The purpose of these standards is to seek setting Sharia requirements and rules for the different modes of investment, insurance and financial services and provide interpretation for such requirements and rules.
"AAOIFI has so far issued more than 80 Sharia standards as part of its efforts to formulate more and more new standards and review the previous ones, to meet the new requirements of financial and banking institutions.”
"Conforming to AAOIFI standards is now considered by Islamic banks 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," he added.
The AAOIFI is an international autonomous, not-for-profit organisation whose role is to develop accounting, auditing, ethics, governance and Sharia standards for Islamic financial institutions. – TradeArabia News Service