Kuwait Finance House (KFH) has welcomed the Central Bank of Kuwait CBK’s instructions and regulations regarding the role of Sharia Supervisory Boards in Islamic banks, including the latest instructions on “Shariah Supervisory Governance for Kuwaiti Islamic Banks. Islamic Banks would be given until December 31st, 2017 to fulfill the requirements.
The issuance of these instructions are in line with the continuing efforts exerted by the CBK to promote Islamic banking activities in Kuwait and accordingly to develop Shariah supervisory regulations for Islamic banks as per applicable best practices.
Isa Abdullah Duwaishan, Executive Manager Shariah Control & Advisory at KFH, stated in a press release, that KFH is a leading Islamic financial institution and is keen on complying with regulations, and applying the sharia practices in all transactions in efforts to guarantee the glimmering reputation of the industry of Islamic financial services.
He hailed the directives of the CBK which resulted in setting regulations related to Shariah supervisory governance for Kuwaiti Islamic Banks, indicating this is a vital and strategic development in the work of Islamic banks and their relationships with the CBK. The implementation of these regulations will result in an improved operating environment for Kuwaiti Islamic banks, and thus further boosts the confidence of the Islamic banking industry in Kuwait.
Duwaishan explained that KFH is the first bank in Kuwait to have Sharia Supervisory Board bringing together a group of elite sharia scholars who approve every product, service or project before going live. They hold periodical meetings to review the activities and businesses of the bank’s sectors and departments. The executive team of the board encompasses qualified Shariah controllers who audit the compliance and commitment of all bank departments to sharia rules. Moreover, the Board of Directors and Executive Management at the bank offers full support and authority to the Sharia Supervisory Board to optimally assume duties.
He said that the Shariah Supervisory Board members have been elected by the shareholders at the general assembly of the bank. KFH’s bylaws ensure consistency, transparency and streamlined process in the information flow and reports exchanging between the Shariah Board and controllers and all the bank’s departments.
He reiterated the efforts of continually improving the skills of Shariah controllers and the Shariah staff in the bank through engaging them in specialized training courses that allow them to be coped with the latest developments in the Shariah matters and economic issues. Also, the Shariah Supervisory Board issues Fatwa and Shariah reports that are viewed as a reference to many banks, which confirms the confidence of KFH as a leading Islamic financial institution.