Regulatory Alerts2014-12-05
Islamic Finance Guidelines
The Bank of Zambia issued these guidelines to establish a comprehensive regulatory framework for Islamic Financing Institutions, covering both exclusive licensees and conventional banks operating Islamic windows. The document mandates strict adherence to Shari'ah principles through mandatory advisory boards, requires compliance with minimum capital adequacy ratios, and enforces robust corporate governance and internal audit structures. It further dictates specific accounting and financial reporting standards, mandates operational firewalls to prevent fund commingling, and requires integrated risk management strategies aligned with Islamic finance principles.
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