Regulatory Alerts2026-07-26
Added · Updated
Guidelines on the Appointment of External Auditor for Takaful Operators, 2026
Licensed takaful and retakaful operators in Somalia must appoint external auditors who satisfy fit and proper criteria, including holding at least one-third ownership by a Somali citizen and possessing relevant takaful accounting experience. The Board is required to oversee the audit process, ensure auditor independence, and assume responsibility for the integrity of external reports, while auditors must annually sign an Independence Declaration Form and report material breaches of solvency or law to the Central Bank of Somalia. Mandatory rotation of the lead audit personnel occurs after four years, with full partner rotation required after seven years. Non-compliance may result in administrative sanctions, including disqualification of auditors and mandates for fresh audits at the operator's expense.