---
title: "What is Shariah review? | IslamicOpenFinance™"
description: "A regular compliance function that assesses whether an institution's operations follow Shariah requirements."
url: https://islamicopenfinance.com/glossary/shariah-review/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Shariah governance](https://islamicopenfinance.com/glossary/#governance)

Shariah governance

# Shariah review

A regular compliance function that assesses whether an institution's operations follow Shariah requirements.

Shariah review is a function that conducts regular assessment of whether an institution's operations, business, affairs and activities comply with Shariah requirements, in the words of Bank Negara Malaysia's Shariah governance policy. It identifies and monitors compliance, reports non-compliance to the board, the Shariah committee and senior management, and keeps staff informed of relevant rulings. It sits within the compliance function, while Shariah audit provides independent assurance.

## Sources

- [Bank Negara Malaysia, Policy Document on Shariah Governance, 2019: Shariah review](https://www.bnm.gov.my/documents/20124/761679/Shariah+Governance+Policy+Document+2019.pdf)

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 audit** An independent assessment of internal controls, risk management and overall Shariah compliance, usually by internal audit.](https://islamicopenfinance.com/glossary/shariah-audit/) [**Shariah compliance function** The internal control function that checks, day to day, that operations follow Shariah board rulings.](https://islamicopenfinance.com/glossary/shariah-compliance-function/) [**Shariah supervisory board** An independent panel of Shariah scholars that approves an institution's products and oversees its Shariah compliance.](https://islamicopenfinance.com/glossary/shariah-board/) [**Shariah non-compliance risk** The operational risk that an institution fails to comply with Shariah rules and principles in its products and services.](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/)

**Shariah governance**

1. [Shariah supervisory board](https://islamicopenfinance.com/glossary/shariah-board/)
2. [Fatwa](https://islamicopenfinance.com/glossary/fatwa/)
3. [Shariah governance system](https://islamicopenfinance.com/glossary/shariah-governance-system/)
4. [Shariah audit](https://islamicopenfinance.com/glossary/shariah-audit/)
5. [Shariah non-compliance risk](https://islamicopenfinance.com/glossary/shariah-non-compliance-risk/)
6. [Purification of income](https://islamicopenfinance.com/glossary/purification/)
7. [Central Shariah board](https://islamicopenfinance.com/glossary/central-shariah-board/)
8. [Shariah compliance function](https://islamicopenfinance.com/glossary/shariah-compliance-function/)

[All 221 terms](https://islamicopenfinance.com/glossary/)