The Presidents / Chief Executives,
All Islamic Banks, Islamic Banking Subsidiary and
All Conventional Banks having Islamic Banking Branches
Madam / Sir
Adoption of 'Accounting and Auditing Organization for Islamic Financial Institutions' (AAOIFI) Shariah Standards
With a view to further strengthen Shariah compliance framework and harmonize the Shariah practices in Islamic banking industry, the AAOIFI Shariah Standards No. 19 (Loan (Qard)), No. 23 (Agency and the Act of an Uncommissioned Agent (Fodooli)), and No. 28 (Banking Services in Islamic Banks) have been adopted with immediate effect subject to clarifications/amendments as given in the attached Appendix – A.
The adoption of the Standards is in addition to current regulations, other instructions and directives issued by SBP from time to time.
The failure to comply with these instructions may invoke penal action under the provisions of Banking Companies Ordinance 1962.
Please acknowledge receipt.
Encl: Appendix - A