Obstacles to the application of internal sharia control in banks transferred to the Islamic banking system
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Abstract
One of the most important requirements for banks to apply the Islamic banking sys-tem is that they have a Shariah governance system in place, and the most important com-ponents of Shariah governance are the existence of a Shariah Supervisory Board comprising competent scholars in Islamic jurisprudence, economics, and finance. This body supervises banking products to ensure that they comply with the principles of Shariah, its ethical values, and strict rules prohibiting RIBA, ʼinterest systemʼ, gharar, and other types of unethical contracts in accordance with the clear principles of Shariah in this area. This article reviews the concept of internal Shariah control in Islamic banks, then shows the obstacles and problems encountered in its application in conventional banks that have converted to Islamic banks or opened branches to provide Islamic financial services.
Keywords:
AAOIFI, audit and internal control, internal Shariah control, Islamic banking governance, Islamic finance, Shariah standards
For citation
Senouci А.В.М. Obstacles to the application of internal sharia control in banks transferred to the Islamic banking system // Bulletin of the Bolgar Islamic Academy, 2024, no 1, рр. 62–72.
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