Central Bank of Kuwait approves formation of Shariah supervision body

KUWAIT: The Central Bank of Kuwait (CBK) said on Monday that its board approved the establishment, last week, of the Higher Committee of Shariah Supervision.

The move aims to maintain financial stability and to underpin the governance of Shariah supervision and compliance in Islamic financial and banking institutions according to international best practices, read a statement.

The decision to establish the committee was taken after an assessment of global practices, where central banks have Shariah supervision authorities in place, added CBK.

The committee will play a key role in presenting suggestions and proposals to CBK on Shariah compliance of its financial transactions with Islamic banks and finance institutions, based on the instructions it issues to these institutions.

The committee will also propose general guidelines for products and services they offer.

It shall also propose controls to regulate the business of Shariah supervision bodies, conduct internal and external audits, and govern the activities related to Fatwa and Shariah supervision at Islamic banks and finance institutions.

The Committee will also preapprove candidates for membership on Shariah Boards at Islamic banks and finance institutions, issue final decisions where Shariah supervision authorities deliberations are inconclusive, and present Shariah-based opinions on matters referred to it by the courts or arbitration centers relating to issues of Islamic banking and finance business.

The committee’s members, who have been appointed for a renewable three-year term, includes four “experienced Fiqh and Islamic banking specialists”, namely Dr. Essa Shaqra – chairman, Dr. Khaled Boodi – member, Mostafa Sayed Alzelzelah – member and Dr. Motlaq Al-Jaser – member (KUNA) –