Formal Shariah Governance/Oversight
Evaluates the structured process for obtaining and implementing scholarly guidance (iftāʾ) through consultative deliberation (shūrā). This formal oversight is crucial for upholding Amānah, assuring stakeholders of Shariah compliance in contracts, public claims, and operations, and safeguarding the organization’s integrity. Rooted in the pursuit of Maqāṣid al-Sharīʿah (objectives of Islamic law), particularly Ḥifẓ al-Māl (preservation of wealth), such governance ensures institutional practices remain strictly within the bounds of Ḥalāl (permissible). By institutionalizing Taqwā (God-consciousness), it actively prevents prohibited elements.
- How does the organization obtain and formalize Shariah guidance for its key decisions and operations?
- Is there an independent Shariah Supervisory Board (SSB) or committee with a formal charter, defined responsibilities, and qualified members?
- Does the organization maintain a defined Shariah review scope and materiality matrix (covering claims, contracts, investments)?
- How are conflicts of interest (COI) for scholars managed, and are independence criteria (e.g., prohibited roles) enforced?
- How does the organization handle scholarly differences (ikhtilaf), and is there a documented escalation path?
- How are the deliberations, rulings (fatāwā), and guidance of the SSB documented, communicated, and made accessible?
- What mechanisms are in place for the periodic review and continuous improvement of the Shariah governance framework?
- Charter / Terms of Reference for the Shariah Supervisory Board (SSB).
- CVs of SSB members demonstrating their qualifications.
- Annual COI declarations and related-party check results for scholars.
- Shariah review scope and materiality matrix approved by trustees.
- Minutes of SSB meetings and documented resolutions/fatāwā register.
- Internal or external Shariah audit reports and management responses.
- Incident log and Serious Incident Reporting (SIR) decision records for Shariah issues.
- Trustee-approved remuneration policy for SSB.
- Evidence of performance reviews of the Shariah governance function.
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | Independent SSB (>=3 members), meets >= quarterly, publishes annual Shariah report and summaries of material rulings, internal and external Shariah reviews completed with no outstanding material non-compliance. |
| 4 | 4/5 | Two or more qualified scholars under written engagement; meets >= semi-annually; documented outcomes; internal Shariah review in place with tracked actions. |
| 3 | 3/5 | Formal Shariah advisor or committee established with Terms of Reference; meets at least annually; rulings and minutes are documented; implementation is tracked informally. |
| 2 | 2/5 | Reliance on general scholarly opinions or ad-hoc consultation without a formal engagement or specific scope. |
| 1 | 1/5 | No formal process for ensuring Shariah compliance. |
Related Criteria
Discussion (1)
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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