National Shariah authority
A Shariah body set up by national law or government, independent of the regulator, whose rulings bind institutions.
The IFSB distinguishes two kinds of centralised Shariah body. A central Shariah authority is established within a regulatory or supervisory body, while a national Shariah authority is typically established by national legislation or government and is independent of the regulator. IFSB-31 asks supervisors to set out how such authorities' pronouncements fit into their framework and what institutions must do to show compliance with them. Where either kind exists, an institution's own board works within its rulings rather than in parallel to them.
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.