Conflict of interest (Shariah committee)
A member's interest that could affect a decision; it must be declared, and the member steps out of that matter.
A conflict of interest arises when a Shariah committee member has a personal interest that could affect, or appear to affect, a decision. Bank Negara Malaysia's Shariah governance policy document requires every member to disclose the nature and extent of any interest that creates an actual or potential conflict on appointment, on reappointment and whenever circumstances change, and to abstain from discussing and voting on the matter concerned. AAOIFI's fatwa standard likewise says a board member should have no personal interest in a matter on which the institution seeks an opinion.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.