GLOBAL: The AAOIFI’s Governance and Ethics Board has approved six governance standards (GSs), namely GS 18 ‘Shariah Decision-Making Process’, GS 1 (2024) ‘Shariah Governance Framework’, GS 19 ‘Shariah Supervisory Board: Appointment and Composition’, GS 20 ‘Shariah Supervisory Board: Functions and Operations’, GS 21 ‘Shariah Supervisory Board: Review and Report’ and GS 22 ‘Application of Shariah Governance Principles to Islamic Finance Subsidiaries / Associates’.
GS 18 ‘Shariah Decision-Making Process’ aims to set out a comprehensive framework for the Shariah decision-making process for Islamic financial institutions and additionally complements the AAOIFI Shariah Standard 29 ‘Stipulation and Ethics of Fatwa in the Institutional Framework’.
The other standards are the outcomes of the Shariah governance framework project, which is aimed at establishing the guiding principles and rules, as well as best practices for a sound and effective Shariah governance framework for Islamic financial institutions.
