Regulatory Alerts2018-07-27
Guideline for Institutions Conducting Islamic Banking Business
The Bank of Mauritius issued this revised guideline to establish comprehensive regulatory, governance, accounting, and prudential requirements for Islamic banking institutions operating via windows or holding exclusive licenses. The framework mandates strict Shari'ah compliance through dedicated advisory boards or advisors, precise capital adequacy calculations, and transparent financial reporting that accounts for zakat obligations and profit-equalization reserves. Furthermore, it requires IBIs to implement integrated risk management and liquidity policies aligned with Shari'ah principles while maintaining operational firewalls between Islamic and conventional banking activities.
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