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IFSB and AAOIFI sign Memorandum of Understanding

  • Islamic accounting Image

24 Oct 2018

The two leading Islamic finance standard-setting bodies Islamic Financial Services Board (IFSB) and Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) have signed a Memorandum of Understanding to facilitate international cooperation between the two organisations.

The AAOIFI is an Islamic international autonomous non-for-profit corporate body that prepares accounting, auditing, governance, ethics and Sharia'a standards for Islamic financial institutions and the industry. It was founded in 1991 and has so far issued a total of 100 standards.

The IFSB, which is based in Kuala Lumpur, started operations in 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. Since its inception, the IFSB has issued 27 standards, guiding principles and a technical note for the Islamic financial services industry.

Areas of cooperation under the MoU between the IFSB and AAOIFI include:

  • Development and revision of prudential, Sharia'a, accounting and governance standards on areas of mutual interest;
  • Promotion of the implementation of prudential, Sharia'a, accounting and governance standards to facilitate the development of the Islamic financial services industry; and
  • Enhancement of awareness through knowledge sharing and organisation of executive programmes, workshops, conferences, and seminars.

Please click to access the press release published on the IFSB website.

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