We Review Operational Procedures for Shari’a Compliance

Dar Al Istithmar’s Risk based Shari’a Compliance Review (“SCR”) identifies Shari’a non-compliance risks both at corporate level and product level including pre-implementation and post implementation of the product / service. 

The methodology for the SCR has been approved by DI’s Sharia Supervisory Board (“SSB”).

The operational activities covered under a typical Shari’a Compliance review include:

                1. Corporate Governance

• Governance procedures
• Financial accounting and reporting
• Legal, compliance and regulatory
• Shari’a Monitoring

                2. Human Capital

• Organizational structure
• Roles and responsibilities
• Skills, capabilities and expertise
• Training

     3. Product Development and Implementation

• Product development framework
• Product characteristics: underlying, wrapper, pricing, booking models
• Terms and conditions
• Business activities, financial ratios

                4. Infrastructure: Operations and Technology

• Review of IT systems supporting Shari’a transactions
• Business processes and procedures
• Controls