Shariah governance

Internal Shari'ah Supervision Committee (ISSC)

In the UAE, the committee of scholars an Islamic financial institution appoints to supervise its transactions, activities and products.

In the UAE framework, an Internal Shari'ah Supervision Committee is a body appointed by an Islamic financial institution, made up of scholars specialised in Islamic financial transactions, with the mandate to supervise independently the institution's transactions, activities and products. The Central Bank of the UAE's rulebook publishes a charter template for the committee covering qualifications, independence, appointment, meetings and decision-making, and requires members to meet eligibility requirements set by the Central Bank and the Higher Shari'ah Authority.

Sources

Central Bank of the UAE Rulebook, Shari'ah Supervision: Charter of the Internal Shari'ah Supervision Committee: charter template, definition and qualification of members

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.Higher Shari'ah Authority (UAE)The UAE's national Shari'ah body whose regulations, standards and resolutions frame institutions' internal Shari'ah committees.Shariah resolution (board decision)A recorded decision of a Shariah board or committee on a product, transaction or issue, with its reasoning and any dissent.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.