Regulatory Alerts2021-10-13
Central Bank of Kuwait Shariah Supervisory Board Governance Rules
The Central Bank of Kuwait issued comprehensive governance instructions to establish clear appointment criteria, operational responsibilities, and independence standards for Shariah Supervisory Boards in Kuwaiti Islamic banks. These regulations mandate that each board comprise at least three qualified, independent scholars who must continuously review bank contracts, issue binding Shariah rulings, and submit detailed annual compliance reports to shareholders. The framework replaces prior 2003 directives, requires banks to obtain Central Bank approval for external Shariah auditors, and sets a January 2018 deadline for full implementation to strengthen regulatory compliance and customer confidence.
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