Exercise 4
Discuss in what ways the following institutions can perform hisbah in the Islamic finance industry.

Central Bank
Implement the legislation through guidelines and requirements, monitor statutory
compliance through supervision, review as well as product physical inspections and
examinations of premises and documents, enforce acts, as well as prescribe punitive
measures for non-compliance following the Shariah principle.

Shariah Board
Confirm the products and activities of financial institutions approved by the board of directors
and implemented by management in accordance with Shariah regulations.

External Audit
The preparation of financial statements and reports is in accordance with international
reporting standards as well as Shariah principles and rules.