Shariah committees and Shariah governance
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This chapter discusses some challenges of Shariah Committees In Islamic financial institutions in dispensing their responsibilities in mitigating the non-compliance risks. The concept of shariah governance has its foundation in the Qur'an and the Sunnah. Shariah (which literally means "the way") is the divinely ordained guidelines of conduct for Muslims in all aspects of their life, which includes financial matters. Any form of transaction, irrespective of financial or otherwise, must be free of any element of injustice to the transacting parties. For financial transactions, any elemerit or form of activity that could be construed as 'riba' or injustice to any of the participants in the transaction is absolutely forbidden. The objective is to ensure that the operations of Islamic Financial Institutions (lFIs) are shariah compliant, failing which will result in loss of confidence and credibility that will impede the future growth of Islamic finance Industry.
Shariah Committee , Shariah governance , Challenges , Islamic financial institutions (IFIs)
Muhamad Sori, Z., Ramadili Mohd, S. M., & Mohd Rasid, M. E. S. (2019). Shariah committees and Shariah governance. In Zulkarnain Muhamad Sori, Sazali Abdul Wahab & Mahmoud Al Homsi (Eds.), Contemporary issues in financial reporting of Islamic financial institution (pp. 171-202). Kota Bharu, Kelantan: UMK Press.