Following types of accounting books shall be maintained at minimum:
a) Accounting Books for participants including Technical accounting books;
b) Accounting books for shareholders;
c) Wakala and Mudaraba fee accounting books;
d) Ledgers and sub-ledgers for participants and shareholders;
e) Journals for participants and shareholders;
f) Adequate accounting and other books to identify and support the contracts and the assets, liabilities, revenues and expenses attributable to its operations; and
g) Any other books as required by the Authority.
The Company which is carrying on both Takaful Insurance of Persons & Fund Accumulation operations and Property and Liability Takaful insurance operations must maintain separate books in respect of both operations. Transactions relating to each business operation must be maintained separately. The Company must maintain accounting and technical books needed to identify all assets and liabilities relating to the business operations.
The Company shall maintain separate accounts for shareholders and participants.
The Authority may from time to time inspect under conditions of secrecy the books, accounts and transactions of any Company and of any of its branch offices.
The Company should submit any documents or information requested by the Authority on any Company that has an ownership relationship with the Company, pertaining to the Company’s books and within the time period that is set by the Authority.
The Company shall maintain backup for all records. The backup shall be maintained in a separate location from the original records.
Regardless of any information mentioned in other instructions, the electronic information or information generated from the computer system, telefax, fax and e¬mail are considered adequate and valid if the authoritative controls were adhered to.
The books referred to above shall be in the form of originals, or in any other form of electronic archiving systems.
The Authority may assign an employee(s) from their end or appoint an external party to inspect, at appropriate times, the books of the Company. The Company shall have all its books available and cooperate with the employee(s) or the external party so that they can fully perform their duties. The Company shall bear all the expenses for the external party as decided by the Authority, unless the Authority deems otherwise.
For inspection purposes, the Company shall allow the Authority access to its books, accounts and documents and shall give such information and facilities as may be required to conduct the inspection.
The retention period of the books and backups along with any other related documents and data, should be for ten (10) years or more, as of the end of the financial year or as of the end date of the activity or the working relation with the participants.
The Company will maintain books beyond the normal statute of limitation periods as in paragraph (11), when the books are subject to ongoing investigations or prosecution in court, until such books are no longer needed.