The Presidents / Chief Executives,
All Islamic Banks, Islamic Banking Subsidiary and
All Conventional Banks having Islamic Banking Branches


Dear Sir/Madam,

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, following AAOIFI Shariah standards have been adopted with immediate effect subject to clarifications/amendments as given in the attached Appendix-A.

i. Shariah Standard No. 42 (Financial Rights and How They Are Exercised and Transferred)
ii. Shariah Standard No. 45 (Protection of Capital and Investments)
iii. Shariah Standard No. 53 - Arboun (Earnest Money)

2. The adoption of the Shariah standards is in addition to current regulations, other instructions and directives issued by SBP from time to time.

3. 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