IFSB and AAOIFI join forces to strengthen the development and resilience of the Islamic financial services industry

Development and revision of prudential, Shariah, accounting and governance standards on areas of mutual interest

  

Manama, Kingdom of Bahrain; Kuala Lumpur, Malaysia – The Islamic Financial Services Board (IFSB), represented by Dr. Bello Lawal Danbatta, Secretary-General, and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), represented by Mr. Omar Mustafa Ansari, Acting Secretary-General, have signed a Memorandum of Understanding (MoU) today to facilitate international cooperation between the two organisations to jointly undertake technical activities relating to development and revision of prudential, Shariah, accounting and governance standards as well as for raising awareness on emerging issues in the Islamic financial services industry.

With the aim of providing guidance to members of both organisations as well as to coordinate efforts for strengthening the development of the Islamic financial services industry, areas of cooperation under the MoU between the IFSB and AAOIFI include:

·         Development and revision of prudential, Shariah, accounting and governance standards on areas of mutual interest
Collaboration includes joint initiatives in activities for developing and revising prudential, Shariah, accounting and governance standards on areas of mutual interest, as well as supporting activities of either organisation through circulation of research materials and exposure drafts to the combined membership.

·        Promote the implementation of prudential, Shariah, accounting and governance standards to facilitate the development of the Islamic financial services industry
Collaboration includes organising of joint workshops, providing expertise for technical assistance missions as well as coordinated policy dialogues to regulatory and supervisory authorities in the member jurisdictions.

·         Enhance awareness through knowledge sharing and organisation of executive programmes, workshops, conferences, seminars etc.
Collaboration includes exchange of information and knowledge-sharing activities to benefit from each organisation’s experiences and expertise. These also include promotion and dissemination of any work related to standards or research as well as enhance outreach to respective member jurisdictions for creating awareness through jointly organising and hosting of international conferences, seminars and forums on areas of mutual interest.

At the occasion, Dr. Bello Lawal Danbatta said, “this MoU between the IFSB and AAOIFI paves way for strengthening coordination and combining efforts for the sustained growth, development and resilience of the Islamic financial services industry. The IFSB and AAOIFI have each been actively promoting the soundness and stability of the Islamic financial services industry through various activities in line with their respective mandates. The MoU going forward provides an excellent opportunity for both standard-setting bodies to consolidate their efforts and provide the Islamic finance stakeholders with more harmonised guidelines and standards.”

Mr. Omar Mustafa Ansari added, "the collaboration between the two major standard setting bodies of the Islamic financial services industry (by way of signing this MoU) is a landmark step which was a need of time and a greater need for times to come. The industry must have its footings on strong and sustainable principles and both the institutions need to strive for that together.”

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About the Islamic Financial Services Board (IFSB)
The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors. The IFSB also conducts research and coordinates initiatives on industry-related issues, as well as organises roundtables, seminars and conferences for regulators and industry stakeholders. Towards this end, the IFSB works closely with relevant international, regional and national organisations, research/educational institutions and market players.

The members of the IFSB comprise regulatory and supervisory authorities, international inter-governmental organisations and market players, professional firms and industry associations.

For more information about the IFSB, please visit www.ifsb.org.

About AAOIFI
AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry. It has a total of 107 standards and technical pronouncements in issue in the areas of Shari’ah, accounting, auditing, ethics and governance for international Islamic finance. It is supported by over 200 institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45 countries.  Its standards and technical pronouncements are currently followed by all the leading Islamic financial institutions across the world and have introduced a progressive degree of harmonization of international Islamic finance practices.

For more information, please contact:
•   Mr. Mohammad Majd Bakir, Senior Manager, Professional Standards Development, AAOIFI, Office: +973 1737 5418; e-mail: mbakir@aaoifi.com   
For more information, please visit http://aaoifi.com/?lang=en

© Press Release 2018

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