Central Shariah board
A national or regulator-level Shariah authority whose rulings set or harmonise Shariah positions across a jurisdiction.
A central Shariah board is a Shariah authority established at national level, often within or alongside the central bank or financial regulator, to issue rulings that apply across a jurisdiction's Islamic financial sector. Its role ranges from advisory to binding, as with Bank Negara Malaysia's Shariah Advisory Council, whose rulings are binding on courts and institutions under Malaysian law. AAOIFI has a governance standard on central Shariah boards.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
Shariah supervisory boardAn independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.FatwaA juristic opinion on a Shariah question; in finance, usually a Shariah board's ruling on a product or transaction.Shariah governance systemThe institutional arrangements through which an institution ensures independent oversight of its Shariah compliance.