By: Mohammed A.Abu
The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) on the Exposure Drafts (EDs) on “Auditing Requirements for Assessing Compliance with Shariah Principles and Rules” and “Principles of Assessment of the Necessity for Obtaining Conventional Reinsurance by Takaful Institutions.”
Representing the collective perspective of its membership from more than 30 jurisdictions, CIBAFI’s submission highlights several areas requiring further clarification and enhancement in both drafts. For the Shariah compliance auditing framework, CIBAFI emphasized the need for additional guidance on application scope, auditors’ responsibilities, and addressing emerging challenges from digital transactions and AI systems.
This was contained in an official statement issued in Manama, Bahrain, Sunday.
Regarding the Takaful reinsurance draft, CIBAFI the statement said, identified key areas for refinement including definitional clarity, numerical thresholds, and structural considerations.
The organization also noted that certain elements of this draft might be better positioned within revised Shariah Standards rather than Governance Standards.
“These submissions reflect our ongoing commitment to advancing robust frameworks that support the continued growth and integrity of the Islamic Financial Services Industry,” CIBAFI also stated.
“CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives including specialized publications and comprehensive professional development programmes”, the organization further stated.
The complete detailed comments submitted to AAOIFI are available on CIBAFI’s website: www.cibafi.org.
