Kuwait central bank forms Higher Committee of Shariah Supervision

Initiative is in line with rapid developments seen in the Islamic finance industry in Kuwait

  
Kuwait Central Bank (CBK) new Building, kuwait City, Kuwait. Image used for illustrative purpose

Kuwait Central Bank (CBK) new Building, kuwait City, Kuwait. Image used for illustrative purpose

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The Central Bank of Kuwait (CBK) has approved the establishment of a Higher Committee of Shariah Supervision to underpin the governance of Shariah supervision and compliance in Islamic finance and banking institutions based on international best practices.

The committee will play a key role in making suggestions and proposals to CBK based on Shariah compliance of its financial transactions with Islamic banks and financial institutions, a statement from the CBK said.

It will also propose general guidelines for products and services they offer.

“It shall also propose controls to regulate the business of Shariah supervision bodies, conduct internal and external audits and govern the activities related to fatwa and Shariah supervision at Islamic banks and finance institutions,” the statement said.

The committee’s members have been appointed for a renewable three-year term. Essa Shaqra is the Chairman of the committee

The committee will also approve candidates for memberships on Shariah boards at Islamic banks and finance institutions.

(Writing by Seban Scaria; editing by Daniel Luiz) 

(seban.scaria@refinitiv.com)

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© ZAWYA 2020

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