Please refer to IBD Circular No. 3 of 2014 wherein ‘Shari’ah Governance Framework for Islamic banking institutions (IBIs) was notified. As the Framework was under review at SBP, therefore, the implementation of the same was deferred vide IBD Circular Letter No. 3 of 2014.
2. In view of the feedback received from various quarters and deliberations of SBP Shariah Board, the Framework has been further refined and is being issued for compliance by IBIs. The Framework shall come into force w.e.f. July 01, 2015. The IBIs are advised to make all the necessary arrangements to comply with the requirements of the Framework within given timelines. Accordingly, IBD Circular No. 3 of 2014 is hereby superseded.
3. Further, Section A, B, C and D of Annexure-1 and Section I and II of Annexure-2 to IBD Circular No. 2 of 2008, pertaining to ‘Instructions for Shariah Compliance’ and ‘Guidelines for Shariah Compliance’ respectively, would stand replaced with instructions contained in the subject Framework. Moreover, as ‘Fit and Proper Criteria (FAPC)’ for the appointment of member Shariah Board of an IBI is made part of the Framework, therefore IBD Circular No. 2 of 2007 as amended from time to time is hereby withdrawn. Furthermore, the regulatory instructions contained in IBD Circular Letter No. 1 of 2010 are superseded through Para 1(iv) and Para 3(E) of the subject Framework.
4. Please note that any non-compliance with provisions of Shariah Governance Framework will render the bank liable for penal action under the provisions of Banking Companies Ordinance, 1962.
5. Please acknowledge receipt.
Encl: Shari’ah Governance Framework for IBIs