Regulatory Alerts2026-07-26
Added · Updated
Guidelines on Corporate Governance for Takaful Operators, 2026
Licensed takaful operators in Somalia must establish and maintain a corporate governance framework that ensures ethical management, Shariah compliance, and the safeguarding of participants' interests. The Board of Directors must comprise at least five members, with a majority being Somali citizens and at least one-third independent directors, serving terms of up to five years renewable twice. Senior management and the Chief Executive Officer are required to meet specific fit and proper criteria, including prior written approval from the Central Bank of Somalia, and must implement Board strategies while ensuring daily Shariah compliance. Operators must also establish independent risk management, actuarial, internal audit, and external audit functions, with external auditors subject to a mandatory seven-year rotation to maintain independence.