T he Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and International Financial Services Board (IFSB) standards on Shariah governance have not been enacted as legislature or institutionalized by the majority of Islamic finance institutions and regulatory authorities in the Islamic finance arena. However, the robust growth and development of the industry has sparked a push from both scholars and policymakers to include Shariah governance frameworks (SGF) in their respective regions and organisations. As mentioned in previous articles, a few approaches are currently being taken to include SGF in a smaller scale including centralized and decentralized in different jurisdictions.
Despite the various efforts undertaken to establish a robust SGF, there are some issues and challenges that countries face with regards to Shariah governance. This article will articulate those issues from both macro and micro perspectives.
ISRA THOMSON REUTERS ISLAMIC COMMERCIAL LAW REPORT 2016 (Pg 37 - 39)