Regulatory Alerts2025-06-10
Guidelines on Financial Reporting for Islamic Commercial Banks in Somalia
The Central Bank of Somalia mandates all licensed Islamic commercial banks, including banking windows and subsidiaries, to prepare financial statements aligned with International Financial Reporting Standards while explicitly accounting for Sharīʿah compliance. The guidelines establish minimum disclosure requirements for specific Islamic contracts, Zakat computation, non-compliant income disposal, capital adequacy, and liquidity risk to ensure transparent and comparable financial reporting. Effective for financial years beginning on or after January 1, 2022, these standards require detailed breakdowns of financing, deposits, and interim reports to facilitate regulatory assessment and strengthen prudential oversight.
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