IFSB
The Islamic Financial Services Board (IFSB) is an international standard-setting organisation
that promotes and enhances the soundness and stability of the Islamic financial services
industry by issuing global prudential standards and guiding principles for the industry, broadly
defined to include banking, capital markets and insurance sectors. The IFSB also conducts
research and coordinates initiatives on industry related issues, as well as organises roundtables,
seminars and conferences for regulators and industry stakeholders.
The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially
inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an
international standard-setting body of regulatory and supervisory agencies that have vested
interest in ensuring the soundness and stability of the Islamic financial services industry, which is
defined broadly to include banking, capital market and insurance. In advancing this mission, the
IFSB promotes the development of a prudent and transparent Islamic financial services industry
through introducing new, or adapting existing international standards consistent
with Sharî'ah principles, and recommend them for adoption.
To this end, the work of the IFSB complements that of the Basel Committee on Banking
Supervision, International Organisation of Securities Commissions and the International
Association of Insurance Supervisors.
As at December 2022, the 187 members of the IFSB comprise 80 regulatory and supervisory
authorities, 10 international inter-governmental organisations, and 97 market players (financial
institutions, professional firms, industry associations and stock exchanges) operating in 57
jurisdictions
Malaysia, the host country of the IFSB, has enacted a law known as the Islamic Financial Services
Board Act 2002, which gives the IFSB the immunities and privileges that are usually granted to
international organisations and diplomatic missions.
AAOIFI
History
AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit
organisation primarily responsible for development and issuance of standards for the global
Islamic finance industry. It has issued a total of 100 standards in the areas of Shari’ah,
accounting, auditing, ethics and governance for international Islamic finance. It is supported by
a number of institutional members, including central banks and regulatory authorities, financial
institutions, accounting and auditing firms, and legal firms, from over 45 countries. Its
standards are currently followed by all the leading Islamic financial institutions across the world
and have introduced a progressive degree of harmonisation of international Islamic finance
practices.
Objectives:
AAOIFI, within the Islamic Shari’ah rules and principles, has the following objectives:
1. to Develop accounting, auditing, governance and ethical thought relating to the
activities of Islamic financial institutions taking into consideration the international
standards and practices which comply with Islamic Shari’ah rules;
2. to Disseminate the accounting, auditing, governance and ethical thought relating to the
activities of Islamic financial institutions and its application through training seminars,
publication of periodical newsletters, preparation of reports, research and through
other means;
3. (A) Harmonize the accounting policies and procedures adopted by Islamic financial
institutions through the preparation and issuance of accounting standards and the
interpretations of the same to the said institutions.
(B) Improve the quality and uniformity of auditing and governance practices relating to Islamic
financial institutions through the preparation and issuance of auditing and governance
standards and the interpretation of the same to the said institutions.
(C) Promote good ethical practices relating to Islamic financial institutions through the
preparation and issuance of codes of ethics to these institutions.
4. Achieve conformity or similarity -to the extent possible- in concepts and applications among
the Shari’ah supervisory boards of Islamic financial institutions to avoid contradiction and
inconsistency between the fatwas and the applications by these institutions, with a view to
activate the role of the Shari’ah supervisory boards of Islamic financial institutions and central
banks through the preparation, issuance and interpretations of Shari’ah standards and Shari’ah
rules for investment, financing and insurance.
5. To approach the concerned regulatory bodies, Islamic financial institutions, other financial
institutions that offer Islamic financial services, and accounting and auditing firms in order to
implement the standards, as well as the statements and guidelines that are published by
AAOIFI.
6. To offer educational and training programs, including professional development programs on
accounting, auditing, ethics, governance, Shari’ah, and other related areas, so as to promote
knowledge on, and to encourage greater professionalism in, Islamic banking and finance.
Training, examination and certification shall be carried out by AAOIFI itself and/or in
coordination with other institutions.
7. To carry out other activities, including certification of compliance of AAOIFI’s standards, so as
to gain wider awareness and acceptance of AAOIFI’s standards on accounting, auditing, ethics,
governance, and Shari’ah.
AAOIFI carries out these objectives in accordance with the precepts of Islamic Shari’ah which
represents a comprehensive system for all aspects of life, in conformity with the environment
in which Islamic financial institutions have developed. This activity is intended both to enhance
the confidence of users of the financial statements of Islamic financial institutions in the
information that is produced about these institutions, and to encourage these users to invest or
deposit their funds in Islamic financial institutions and to use their services.
Vision:
To guide IF’s markets operation and financial reporting on Shari’ah principles and rules.
To provide IF markets with standards and guidelines that can support the growth of the
industry.
Mission
Standardization and harmonization of international Islamic finance practices and financial
reporting in accordance to Shari’ah.
Organizational Structure
1 The General Assembly, the Board of Trustees, the Executive Committee and the General
Secretariat.
2 The Technical Boards, namely: the Accounting Board, the Shari’ah Board, and the Governance
and Ethics Board.
OIC
History
History
The Organisation of Islamic Cooperation (OIC) is the second largest organization after the
United Nations with a membership of 57 states spread over four continents. The Organization is
the collective voice of the Muslim world. It endeavors to safeguard and protect the interests of
the Muslim world in the spirit of promoting international peace and harmony among various
people of the world.
The Organization was established upon a decision of the historical summit which took place in
Rabat, Kingdom of Morocco on 12th Rajab 1389 Hijra (25 September 1969) following the
criminal arson of Al-Aqsa Mosque in occupied Jerusalem.
In 1970 the first ever meeting of Islamic Conference of Foreign Minister (ICFM) was held in
Jeddah which decided to establish a permanent secretariat in Jeddah headed by the
organization’s secretary general. Amb. Hissein Brahim Taha is the 12th Secretary General who
assumed the office in November 2021.
The first OIC Charter was adopted by the 3rd ICFM Session held in 1972. The Charter laid down
the objectives and principles of the organization and fundamental purposes to strengthen the
solidarity and cooperation among the Member States. Over the last 40 years, the membership
has grown from its founding members of 30 to 57 states. The Charter was amended to keep
pace with the developments that have unraveled across the world. The present Charter of the
OIC was adopted by the Eleventh Islamic Summit held in Dakar on 13-14 March 2008 to become
the pillar of the OIC future Islamic action in line with the requirements of the 21st century.
The Organization has the singular honor to galvanize the Ummah into a unified body and have
actively represented the Muslims by espousing all causes close to the hearts of over 1.5 billion
Muslims of the world. The Organization has consultative and cooperative relations with the UN
and other inter-governmental organizations to protect the vital interests of the Muslims and to
work for the settlement of conflicts and disputes involving Member States. In safeguarding the
true values of Islam and the Muslims, the organization has taken various steps to remove
misperceptions and has strongly advocated elimination of discrimination against Muslims in all
forms and manifestations.
The Member States of the OIC face many challenges in the 21st century and to address those
challenges, the Third Extraordinary Session of the Islamic Summit held in Makkah in December
2005, laid down the blue print called the Ten-Year Program of Action. It successfully concluded
with the close of 2015. A successor programme for the next decade (2016-2025) has since then
been adopted.
The new programme OIC-2025 is anchored in the provisions of the OIC Charter and focuses on
18 priority areas with 107 goals. The priority areas include issues of Peace and Security,
Palestine and Al-Quds, Poverty Alleviation, Counter-terrorism, Investment and Finance, Food
Security, Science and Technology, Climate Change and Sustainability, Moderation, Culture and
Interfaith Harmony, Empowerment of Women, Joint Islamic Humanitarian Action, Human
Rights and Good Governance, among others.
Among the OIC’s key bodies: the Islamic Summit, the Council of Foreign Ministers (CFM), the
General Secretariat, in addition to the Al-Quds Committee and three permanent committees
concerned with science and technology, economy and trade, and information and culture.
There are also specialized organs under the banner of the OIC including the Islamic
Development Bank and the Islamic Educational, Scientific and Cultural Organization, as well as
subsidiary and affiliate organs that play a vital role in boosting cooperation in various fields
among the OIC member states.
THE GENERAL SECRETARIAT
It was established by the First Islamic Conference of Foreign Ministers, held in Jeddah, Kingdom
of Saudi Arabia, in Muharram 1390H (February 1970).
The General Secretariat comprises a Secretary General who is the Chief Administrative Officer
of the Organisation and such staff as the Organisation requires.
The Secretary General:
The Secretary General is elected by the Council of Foreign Ministers for a period of five years,
renewable once only. The Secretary-General is elected from among nationals of the Member
States in accordance with the principles of equitable geographical distribution, rotation and
equal opportunity for all Member States with due consideration to competence, integrity and
experience.
The Secretary General assumes the following responsibilities:
1. bring to the attention of the competent organs of the Organisation matters which, in his
opinion, may serve or impair the objectives of the Organisation;
2. follow-up the implementation of decisions, resolutions and recommendations of the
Islamic Summits, and Councils of Foreign Ministers and other Ministerial meetings;
3. provide the Member States with working papers and memoranda, in implementation of
the decisions, resolutions and recommendations of the Islamic Summits and the
Councils of Foreign Ministers;
4. coordinate and harmonize, the work of the relevant Organs of the Organisation;
5. prepare the programme and the budget of the General Secretariat;
6. promote communication among Member States and facilitate consultations and
exchange of views as well as the dissemination of information that could be of
importance to Member States;
7. perform such other functions as are entrusted to him by the Islamic Summit or the
Council of Foreign Ministers;
8. submit annual reports to the Council of Foreign Ministers on the work of the
Organisation.