Regulatory Alerts2025-03-21 | IFPD Circular No. 03Adoption of ‘Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI) Shariah Standards
This document outlines the formal adoption of AAOIFI Shariah Standard No. 20 regarding commodity sales in organized markets, providing specific textual amendments and clarifications to be read alongside existing clauses. It establishes strict Shariah definitions and rulings for various contract types, including spot, forward, and derivative transactions, while explicitly prohibiting certain futures contracts and practices. The guidance serves to harmonize Shariah-compliant operations in Islamic Banking Institutions by delineating permissible versus impermissible applications of commodity sales and agency agreements.
Share