Regulatory AlertsImplementation of Sharia Governance for Sharia Commercial Banks and Sharia Business Units
The Financial Services Authority (OJK) issued Circular Letter 15/SEOJK.03/2024 to operationalize the detailed implementation of Sharia governance for Sharia Commercial Banks (BUS) and Sharia Business Units (UUS), serving as the execution rule for POJK No. 2 of 2024. The regulation establishes comprehensive requirements for the Sharia Supervisory Board (DPS), including fitness and propriety assessments, duties, remuneration, and reporting, while defining the roles of Sharia governance functions such as Sharia risk management, compliance, and internal audit. It further mandates external reviews of Sharia governance implementation by independent parties and maintains the validity of prior Bank Indonesia circulars to the extent they do not conflict with this new framework.