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Sharia authorities in UAE reviewing progress of Central Bank activities

The Higher Sharia Authority, HSA, for financial and banking activities at the UAE Central Bank has reviewed the work plan for the year 2019 and agreed to adopt a number of procedures to enhance efficiency and effectiveness in dealing with the various requests submitted by the Central Bank and Islamic financial institutions.

This came during the authority’s first meeting for 2019, which was chaired by Sheikh Dr. Ahmed bin Abdulaziz Al Haddad, Chairman of the HSA, and attended by the authority’s members; Sheikh Prof. Dr. Jasim Ali Al Shamsi, Sheikh Esam Muhamad Ishaq, Sheikh Dr. Aznan Hasan, and Sheikh Dr. Osaid Muhammad Adeeb Al Kailani.

At the meeting, Sheikh Dr. Al-Haddad highlighted the achievements of the HSA in 2018 particularly the adoption of the Sharia standards of the Accounting and Auditing Organisation for Islamic Financial Institutions, AAOIFI, and the adoption of best practices in the Islamic Sharia governance for Islamic Financial Institutions, IFIs.

He also added that the authority adopted best practices that enhance compliance with Sharia and the governance in the Islamic financial services industry. He emphasised the importance of these milestones in strengthening the stability of Islamic finance and positioning the UAE as a leading hub for Islamic finance.

The HSA reviewed the work plan for the year 2019 and agreed to adopt a number of procedures to enhance efficiency and effectiveness in dealing with the various requests submitted by the Central Bank and Islamic financial institutions.

They also discussed a number of areas related to drafts of prudential standards and guidelines, and issued resolutions and directives concerning the Sharia aspects of these drafts.

Having looked at the Sharia Examination Plan for 2019, the HSA issued its directives regarding the examination scope and mechanisms.

The meeting also addressed requests to outsource some of the internal Sharia control functions to external companies and passed a resolution on the essential Sharia governance related functions that can be outsourced and other functions that IFIs must establish internally.

The authority issued resolutions and guidance relating to the adoption of new Islamic financial products that are going to be offered to the public by some IFIs, taking into account consumer protection principles and transparency requirements in Islamic financial products.

Source: WAM

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