ALDAR International For Sharia Compliance

Islamic Financial Institutions (IFIs) are financial institutions that operate in line with Shari’ah principles and rules. This includes entities of Islamic banks, Takaful, Capital markets, Islamic Financing & Leasing companies, Investment cos, Zakat, Awqaf, the standalone branches, divisions and windows of conventional financial institutions that offer products and services in line with Shari’ah principles and rules.
ALDAR International For Sharia Compliance provides its services in accordance with shariah principals & standards that are issued by accounting & auditing organization for islamic financial institutions (AAOIFI) , islamic financial services board (IFSB) and centeral Shairah authorities. ALDAR takes into account the related standards issued by IFSB, and IIFM. In addition to these standards issued by Islamic professional organizations, ALDAR takes into consideration the Shari’ah councils/Higher Shariah Authority & instructions of central banks and capital markets in all concerned countries.

Shariah Auditing & Reviewing

  • External Shariah Auditing & Compliance review
  • Internal Shariah Auditing & Compliance review
  • (Banks/IFIs & Takaful / Leasing finance, Investment Co. & others)
  • Develop Internal Shariah Audit Manual

External Shari'ah Audit

External Shari’ah Audit is a key pillar in Shari’ah governance framework. It is an independent engagement that aims at examining and assuring Shari’ah compliance within IFI. Besides, an independent & comprehensive External Shari’ah Auditing is essential for safeguarding the integrity, reputation and sustainability of IFI.

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Internal Shari'ah Audit

Internal Shari’ah audit function is an important component of Islamic Financial Institutions governance framework as it promotes internal accountability and transparency, and helps gain the confidence of all the stakeholders of the IFI.

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Products Development & Documentations

  • Islamic financing & investing and deposit products development and relevant Documentations (Contracts/Agreements/ Schedules/Forms etc.)
  • Perform gap analysis study on the existing products & services as completed to AAOIFI Shariah Standards
  • AAOIFI & any Others Shariah Standards or regulatory instruction Implementation

Shariah Advisory Services

Shariah Governance Framework
  • Developing Shari’ah Governance Framework
  • Defining department’s structure & role/functions
  • Defining Job descriptions
Certifying Shariah Compliance
  • Shariah Compliance Screening of Investments.
  • Shariah Compliance Certification for Corporate Clients / Companies etc.
  • Shariah Compliance Certification of issuance of IPOs

Mudarabah Profit Distribution Mechanism

  • Develop “Islamic Mudarabah Profit Distribution” process.
  • Developing accounting procedure for payments of profits to depositors under Islamic Mudarabah.
  • Supervise/Coordinate during IT System development for “Islamic Mudarabah Profit Distribution Mechanism”, its Testing & Implementation.
  • Conduct Sharia review of Islamic Mudarabah Profit Distribution – periodical workings for Sharia Board approval.

Sukuk and Syndication Advisory Services

  • Complete Sharia advisory in relation to structuring of Sukuk and other Islamic capital market transactions.
  • Sharia advisory in respect of documentation (with point-by-point guidance to the transaction lawyers besides to banks, rating and listing agencies and investors) during various stages of Sukuk, securitization, IPO and other capital market transactions. 

Guidance to Implement AAOIFI Standards

  • Develop Islamic Accounting Transactions module of Financing/ Investing and Deposit Products & Banking Services as per Financial Accounting Standard (FAS) AAOIFI.
  • Designing the Islamic General Ledger Chart of Accounts Structure, based on the Institution Business module and AAOIFI FAS.
  • Designing the Shariah-Compliant format of IFIs Financial Statements/ Annual Financial Reports including disclosure/ notes to the financial statement.
  • Defining the process of Zakat payable by IFIs on behalf of its Shareholders as per AAOIFI Standards.

Asset Management Funds Advisory

  • Complete door to door Sharia advisory for the structuring, documentation, screening, and execution guidance in relation to all types of Islamic funds, including Real Estate Investment Trust (REIT), Islamic Fintech based funds and the other investment vehicles etc.

Establishing New Islamic Banks and Windows

  • Establishment of new Islamic Financial Institution and Islamic windows/ Subsidiaries in conventional banks
  •  Full conversion of conventional bank into Islamic bank
  •  Ensuring & maintaining the Shariah Compliance on IT Systems / Fintech-
  •  Implementation.

Regulatory Review & Drafting

  • End to end advice to the countries willing to introduce Islamic finance.
  • Waqf advisory.
  • Zakat advisory

Assessment & Management of the risk of non- compliance with Shariah

  • Shariah Non-Compliance Risk Assessment subject to forfeiture of Income by Shariah Committee
  • Shariah Non-Compliance Risk mitigation & controls to prevent the Shariah non-compliance / violation, while executing the Islamic banking products.