Shariah Compliance
Adherence to Islamic financial principles and avoidance of prohibited elements.
Detailed Description
Shariah Compliance
What is Shariah Compliance?
Shariah Compliance refers to adherence to Islamic law in financial transactions, ensuring they align with ethical and legal standards set by Islamic teachings.
What are the key principles of Shariah Compliance?
Key principles include prohibition of riba (interest), risk sharing, ethical investments, and transparency and honesty in financial dealings.
Why is Shariah Compliance important in Islamic finance?
It distinguishes Islamic finance from conventional systems, promotes ethical practices, and builds trust among clients and investors.
What role does a Shariah Supervisory Board play?
A Shariah Supervisory Board ensures that financial products comply with Shariah principles by reviewing contracts and providing guidance.
What are some common types of Shariah-compliant financial products?
Common products include Islamic savings accounts, Islamic mortgages, sukuk, and takaful.