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The role of Islamic finance windows in developing the global Islamic finance industry has been of immense importance. This has given rise to a number of discussions within the industry from Shari’ah, governance and accounting perspectives and have heighted certain
challenges and need for adopting best practices.
AAOIFI has undertaken multiple projects through its revision of Financial Accounting
Standards (FAS) 18 “Islamic Financial Services Offered by Conventional Financial Institutions” and the issuance of the exposure draft of revised Shari’ah Governance Framework (RSGF), a joint standard of IFSB and AAOIFI.
This session is particularly relevant for those markets where the systemic significance of
conventional financial institutions offering Islamic financial services has increased over the past decade.
Main topics:
Governance and Shari’ah governance considerations for Islamic finance windows –
general and specific
Segregation of funds and treasury operations
Challenges of Islamic finance windows and the need for enhanced financial reporting for
improved governance
Solutions presented through the exposure draft of revised Shari’ah Governance
Framework
Core banking system – implementation issues for windows
Regulatory challenges of Islamic finance windows including separate capital and /or solvency requirements
Organisational structure and reporting line for windows
Islamic finance model vs. standalone Islamic finance institutions – model for emerging markets
Experience of operating Islamic finance windows in different markets and the
governance mechanisms
