Responsibilities

The Higher Committee of Shari’ah Supervision Responsibilities

The Higher Committee of Shari’ah Supervision reports directly to the Central Bank of Kuwait’s Board of Directors. The Higher Committee shall have the following tasks and responsibilities:

• Presenting opinion and counsel to the Central Bank regarding matters referred to it in the areas of:
  • Shari’ah conformity of the Central Bank’s financial transactions with Islamic banks and finance institutions (such as monetary policy and liquidity management instruments).
  • Instructions issued to Islamic banks and finance institutions subject to Central Bank supervision.
• Proposing general Shari’ah guidelines for products and services offered by Islamic banks and finance institutions.
• Proposing guidelines and regulations organizing the business of Shari’ah supervision authorities, carrying out internal and external Shari’ah audits, and govern the activities related to Fatwa and Shari’ah supervision in Islamic banks and finance institutions.
• Pre-approving candidates for membership in Shari’ah Boards at Islamic banks and finance institutions.
• Issuing decisions where there is a disagreement between members of the Shari’ah Boards at Islamic banks and finance institutions, or where such authorities fail to reach a definitive Shari’ah opinion on a matter put before them, which shall subsequently be referred to the Higher Committee of Shari’ah Supervision by the Board of Directors of the banks/finance institutions.
• Presenting Shari’ah-based opinions on matters referred to it by the courts or arbitration centers relating to issues of Islamic banking and finance business.
• Presenting opinions on any other matters referred to it which are relevant to Islamic banking and finance business, or to the affairs of units subject to the Central Bank of Kuwait’s supervision.