Shari'ah governance is a system that is led by a Shari'ah board and an authority that oversees the Islamic financial institution's (IFI) practices. It is a crucial organ of IFIs as it ensures the efficient implementation of Shari'ah principles by directing, reviewing, and supervising their activities and legal rulings. This overview aims to shed light on the duties and responsibilities of Shari'ah board members, which include directing, reviewing, and supervising the activities of IFIs to ensure adherence to Shari'ah principles.
Shari'ah Board Members are expected to have a comprehensive understanding and knowledge of the following six areas:
1) Issues related to the shari'ah governance system;
2) The internal policy framework and overall policies associated with their business activities;
3) Their duties and responsibilities as members of the Shari'ah board;
4) Attributes that are necessary for shari'ah boards, such as transparency, competence, confidentiality, and interdependence mechanisms;
5) The overall operations of business procedures;
6) The regular assessment mechanism.
It is crucial for Shari'ah Board members to be well-versed in these areas to fulfill their role effectively.
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