Why Shariah Review Need ?

Shariah review is a comprehensive and meticulous process designed to ensure that all operations, products, and services offered by an Islamic financial institution are in strict adherence to the principles of Islamic law (Shariah). It serves as a vital internal and external audit mechanism, scrutinizing financial activities to verify their compliance with ethical, moral, and jurisprudential guidelines derived from the Quran and Sunnah. This rigorous examination goes beyond superficial adherence, delving into the underlying contracts, transactional structures, income generation, and asset management to confirm genuine Shariah compliance. The importance of Shariah review extends far beyond religious obligation; it is fundamental for maintaining public trust, safeguarding institutional integrity, and ensuring the long-term sustainability of Islamic finance. By identifying and rectifying any non-compliant practices, Shariah review mitigates reputational risks, enhances credibility among stakeholders, and fosters a stable financial ecosystem. Furthermore, it plays a crucial role in promoting ethical governance, encouraging product innovation that genuinely aligns with Islamic values, and preparing institutions for evolving regulatory landscapes. In essence, Shariah review acts as the unseen compass, guiding Islamic financial institutions towards ethical conduct, financial prudence, and a commitment to social responsibility, thereby upholding the unique value proposition of Islamic finance in the global economy.