Glossary
AAOIFI
The Bahrain-based body that writes the standards most Islamic banks are measured against.
The Accounting and Auditing Organization for Islamic Financial Institutions issues Shariah, accounting, auditing, governance and ethics standards. Its Shariah Standard No. 2 is the single most important document for judging a card. AAOIFI states that its Shariah Standards are mandatory regulatory requirements in Bahrain, Jordan, the Kyrgyz Republic, Mauritius, Nigeria, Oman, Pakistan, Qatar, the QIFC, Sudan, Syria, the UAE and Yemen, and recommended as guidelines in Kuwait, while noting that a survey is under way to establish the exact position.
Related terms
IFSBIslamic Financial Services Board: the Kuala Lumpur-based body that writes prudential standards for Islamic finance, the equivalent of banking supervision rules rather than religious rulings.IIFAThe International Islamic Fiqh Academy, the OIC's own council of scholars, whose resolutions carry great weight across the Muslim world.Shariah boardThe panel of scholars inside a bank that decides whether its products are religiously acceptable.SACShariah Advisory Council: Malaysia's national body whose rulings on Islamic finance bind the industry and are a reference for the courts.
Sources
- AAOIFI, Shariah Standards, 2015 English edition; AAOIFI adoption page, https://aaoifi.com/adoption-of-aaoifi-standards/?lang=en