A national-level Shari’a board that oversees the Islamic finance industry in its own country, in addition to providing consultation to the regulatory body (to which it is attached) on all issues related Islamic finance. It is the highest Shari’a authority with respect to Islamic finance in its own country or jurisdiction. It has the power to issue fatwa on relevant issues (Shari’a and Islamic finance industry).
This board consists of a number of core members (members with voting rights) who are specialized in Shari’a (fiqh al-muamalat and/or usul al-fiqh) and may seek the opinion of consultants on technical matters such as accounting, law, economics, finance, etc. Among a wide spectrum of functions, the scope of its work includes endorsing the validity of structures of new products offered by IFIs as well as the Shari’a basis on which these new products are structured.
It is also referred to as a National Shari’a Board or a Centralized Shari’a Board in specific countries.
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