Contributions and developments of Shari'a Supervisory

Many Islamic financial institutions and institutions have started to focus on the field of Shari'a supervision. This is because it has a great impact on controlling the work of Islamic banks and institutions and ensuring their compliance with Islamic Shariah regulations in light of the doubling of Islamic banking during the past years. In more than 70 countries around the world, with the participation of 850 banks, with growth rates of 15 to 20% per annum, and will present the most important developments and recommendations on the controls and supervision of Islamic financial institutions and institutions, Mechanisms that will help reduce exposure to the risk of non-compliance controls legitimacy (legal risk).
Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain adopted six standards for controls legitimacy which is as follows: -
- Standard No. (1) The appointment, composition and report of the Shari'a Supervisory Board in June 1997. The definition of Shari'a Supervisory Board is defined as an independent body of jurists specialized in the jurisprudence of transactions and may be a member of specialists in the field of Islamic financial institutions, The Shari'a Supervisory Board shall direct, supervise and supervise the activities of the Corporation to ensure compliance with the provisions and principles of Islamic Shari'a.
- Standard No. (2) Shariah Supervision in June 1998. It deals with the procedures of Shari'a supervision and its report and definition. It is an examination of the extent of the Corporation's compliance with Shari'a law in all its activities. It includes examination of contracts, agreements, policies, products, transactions and basic systems.
- Standard No. (3) Internal Shari'a Supervisory in June 1999. It dealt with the scope of internal Shari'a supervision and procedures and the necessity of its independence in the organizational structure of the institution and its report and the elements of the effective system of control.
- Standard No. (4) of the Audit Committee and the controls of Islamic financial institutions in January 2001, which dealt with the functions and responsibilities of the Commission and how to create and prepare their reports.
- Standard No. (5): The independence of the Shari'a Supervisory Board in June 2005. It aims at establishing the necessary rules to assist the Shari'a Supervisory Bodies in the aspects related to their independence and to deal with related issues.
- Standard No. (6): Statement of Principles of Control in the Islamic Financial Institutions in November 2005. It dealt with the development of the basic principles, principles and concepts related to exactly in Islamic financial institutions.
In April 2009, Al-Faka International Islamic Complex adopted Resolution No. 177 (3/19) on the role of Shari'a Supervisory in controlling Islamic banks, their importance, terms and conditions and how they work. Of the safety of its application,
has addressed the resolution presentation of the components of the supervision of Sharia as follows:
- Shari'a Supervisory Board (a group of scholars specialized in the jurisprudence of transactions and not less than three)
- Internal Shari'a Supervisory Department (a department that implements the necessary procedures to ensure the proper implementation of Shari'a Board decisions)
- Central Shari'a Supervisory Board (a supervisory body at the level of supervisory authorities in the State)
 In December 2009, the Islamic Financial Services Board adopted the Principles for Shari'a Supervisory Regulations for Islamic Financial Services Institutions, which dealt with the definition of Shari'ah Supervisory System as a system that refers to a set of institutional and regulatory arrangements through which Islamic financial services institutions ensure that effective Shari'a Each of the structures and procedures related to the issue of fatwas / Shari'a decisions, and the dissemination of information concerning the fatwas / decisions among the employees of the Islamic Financial Services Institution who monitor compliance with the fatwas / And review and / or audit the internal legal obligation to verify that such compliance has been achieved, remedied and corrected the non-compliance as far as possible, and review the annual legal obligation / audit to ensure that such audit / audit has been conducted in an appropriate manner and that its results have been any note by the Shariah Board,
the Council may offer nine guiding principles and is divided into five parts as follows: -
Part 1: The general approach of the system of Shari'a controls
· Must be legitimate control structure adopted by the Islamic financial services institutions commensurate with the size and complexity of the nature of their work, and proportionate with him.
Every Islamic financial services institution must ensure that the Shari'ah Board has the following:
*Clear employment terms related to their appointment and responsibility.
*Clear operational procedures and well defined reporting lines.
* Good understanding and familiarity with the ethics and behavior of the profession.
Part 2: Efficiency
• IFS must ensure that any person delegated to oversee the Shari'ah Supervisory System adequately meets the "adequacy and adequacy" rule (good character - competence and ability).
· Must Islamic financial services institutions that facilitate the continuous professional development of employees in the legitimate body of persons, and in the internal commitment to the forensic unit and internal forensic audit.
• The effectiveness of the Shari'a Board as a whole and the participation of each of its members should be formally assessed.
Part 3: Independence
• The Sharī'ah board should have a strong and independent supervisory role, with sufficient capacity to issue substantive judgments on Shari'a-related issues, and no individual or group should be allowed to control the decision-making of the Shari'a Board.
• Full and timely information must be provided to the Shari'a Board in order to perform its duties before each meeting on an ongoing basis.
Part 4: Confidentiality
• Members of the Shari'ah Board must ensure that the internal information they receive during the course of their duties remains confidential.
Part 5: Consistency
• IFS should fully understand the legal and regulatory framework for issuing Shari'a judgments / decisions in the country in which it operates and must ensure that the Shari'a Board adheres to the said framework and, where possible, promotes standardization of controls.