(19) Statement on Shariah Compliancy of Albaraka Bank
Note: Daarul Iftaa Camperdown, the organisation that issued the recent fatwa against Albaraka and Oasis, is said to certify Islamic Finance, a division of Wesbank, which in turn is a division of First National Bank- one of the four major conventional banks operating in Southern Africa.
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Statement on Shariah Compliancy of Albaraka Bank Limited
Respected Client,
The Muslim Community in South Africa is constantly faced with the challenge of ensuring that their dealings comply with Shariah. With the Interest Based Banking system having gripped nations all over the world, providing an acceptable alternative to the Riba based banking system has become a burning issue of the time.
Albaraka Bank Limited’s mission is to reflect Islamic Economics Principles in all its operations and products and is therefore dedicated to providing this alternative and fulfilling the need of providing a Banking solution consistent with the principles of Shariah.
The Bank strives to achieve this by providing financial products that conform to the principles of Shariah. Furthermore, any queries received from clients or staff members and the public, on products, procedures or even general issues pertaining to Shariah Compliance are tabled at monthly Internal Shariah Committee meetings. The Bank has an Independent Shariah Supervisory Board which meets on a regular basis to resolve issues tabled at the Internal Shariah Committee.
Together with the guidance of the Shariah Board, the Bank uses the Islamic Banking Standards set by AAOIFI - The Accounting and Auditing Organisation for Islamic Financial Institutions, as a basis in its operations. The Bank has chosen to adopt these standards in order to ensure consistency and compatibility of its applications with the International Islamic financing arena.
AAOIFI (The Accounting and Auditing Organization for Islamic Financial Institutions) was established in Algiers on 1 Safar 1410AH corresponding to 27 March 1991 and is based Bahrain.
One of the primary objectives of AAOIFI is to prepare, promulgate and interpret Shariah standards for Islamic Financial Institutions in order to achieve harmonization in the application of Islamic Financial concepts among the Shariah supervisory Boards of Islamic Financial Institutions and to avoid contradiction or inconsistency between the Fatwas issues by different Islamic Scholars around the world. The Shariah Standards are prepared by a group of highly qualified Ulama selected from all over the world. The Shariah Board of AAOIFI is currently chaired by Mufti Taqi Usmani.
Over the years, AAOIFI has taken significant steps to encourage the application and enforcement of its standards throughout the world. The standards issued by AAOIFI are used as guidelines by many government regulators in jurisdictions such as Bahrain, Sudan, Jordan, Malaysia, Qatar, Saudi Arabia, Dubai and Lebanon. Most recently, Syria has signed an agreement to mandate and adopt AAOIFI's standards.
AAOIFI has received acceptance from Islamic Financial Institutions internationally. Membership of AAOIFI continues to expand and now stands at 115 members from 27 countries. This steady progress is a reflection of the confidence placed on AAOIFI internationally as the leading representative of the industry.
Whilst the Bank primarily adopts the rulings of the AAOIFI Standards and Albaraka’s Independent Shariah Supervisory Board in its procedures and products, we recognize the leadership role that the Ulama play in the community. In this context, any inputs and suggestions received are treated with utmost priority and importance.
We pray that Allah give us the ability to work in unity to strengthen the Ummah in general and specifically the Islamic Economic System.
We welcome any suggestions or advice that may be helpful to us in ensuring adherence to Shariah and thereby attainment of our ultimate objective, to please our Creator. We will always continue to play a leading role in a transparent and proactive manner in our effort to strengthen the Islamic Economic System.
-------------------------------------------------------------
Statement on Shariah Compliancy of Albaraka Bank Limited
Respected Client,
The Muslim Community in South Africa is constantly faced with the challenge of ensuring that their dealings comply with Shariah. With the Interest Based Banking system having gripped nations all over the world, providing an acceptable alternative to the Riba based banking system has become a burning issue of the time.
Albaraka Bank Limited’s mission is to reflect Islamic Economics Principles in all its operations and products and is therefore dedicated to providing this alternative and fulfilling the need of providing a Banking solution consistent with the principles of Shariah.
The Bank strives to achieve this by providing financial products that conform to the principles of Shariah. Furthermore, any queries received from clients or staff members and the public, on products, procedures or even general issues pertaining to Shariah Compliance are tabled at monthly Internal Shariah Committee meetings. The Bank has an Independent Shariah Supervisory Board which meets on a regular basis to resolve issues tabled at the Internal Shariah Committee.
Together with the guidance of the Shariah Board, the Bank uses the Islamic Banking Standards set by AAOIFI - The Accounting and Auditing Organisation for Islamic Financial Institutions, as a basis in its operations. The Bank has chosen to adopt these standards in order to ensure consistency and compatibility of its applications with the International Islamic financing arena.
AAOIFI (The Accounting and Auditing Organization for Islamic Financial Institutions) was established in Algiers on 1 Safar 1410AH corresponding to 27 March 1991 and is based Bahrain.
One of the primary objectives of AAOIFI is to prepare, promulgate and interpret Shariah standards for Islamic Financial Institutions in order to achieve harmonization in the application of Islamic Financial concepts among the Shariah supervisory Boards of Islamic Financial Institutions and to avoid contradiction or inconsistency between the Fatwas issues by different Islamic Scholars around the world. The Shariah Standards are prepared by a group of highly qualified Ulama selected from all over the world. The Shariah Board of AAOIFI is currently chaired by Mufti Taqi Usmani.
Over the years, AAOIFI has taken significant steps to encourage the application and enforcement of its standards throughout the world. The standards issued by AAOIFI are used as guidelines by many government regulators in jurisdictions such as Bahrain, Sudan, Jordan, Malaysia, Qatar, Saudi Arabia, Dubai and Lebanon. Most recently, Syria has signed an agreement to mandate and adopt AAOIFI's standards.
AAOIFI has received acceptance from Islamic Financial Institutions internationally. Membership of AAOIFI continues to expand and now stands at 115 members from 27 countries. This steady progress is a reflection of the confidence placed on AAOIFI internationally as the leading representative of the industry.
Whilst the Bank primarily adopts the rulings of the AAOIFI Standards and Albaraka’s Independent Shariah Supervisory Board in its procedures and products, we recognize the leadership role that the Ulama play in the community. In this context, any inputs and suggestions received are treated with utmost priority and importance.
We pray that Allah give us the ability to work in unity to strengthen the Ummah in general and specifically the Islamic Economic System.
We welcome any suggestions or advice that may be helpful to us in ensuring adherence to Shariah and thereby attainment of our ultimate objective, to please our Creator. We will always continue to play a leading role in a transparent and proactive manner in our effort to strengthen the Islamic Economic System.
