Article (5) General Requirements
Effective from 8/9/2023| 5.1 | The Company must comply with Islamic Shari’ah Provisions in all of its objectives, activities, operations and code of conduct at all times. |
| 5.2 | The Company must have in place governance controls and mechanisms in accordance to its size and complexity of its operations to ensure compliance with Islamic Shari’ah Provisions in all of its objectives, activities, operations and code of conduct. |
| 5.3 | Branches of foreign licensed Takaful Insurance Companies that conduct businesses and activities in accordance with the Islamic Shari’ah Provisions must adhere to this Standard or establish equivalent arrangements to ensure regulatory comparability and consistency. The equivalent arrangements, if applicable, shall include the matters related to general assembly, the Board and its committees without contradicting the prevailing laws in the UAE. The equivalent arrangements shall be submitted to the Central Bank for approval. |
| 5.4 | The Shari’ah governance of a Company must include the following as minimum requirements: |
| a. | Stating the responsibility of the Board in regards to the Company’s compliance with Islamic Shari’ah Provisions, the complete supervision on the Company, and establishing an adequate Shari’ah governance framework. |
| b. | Identification of the Senior Management responsibilities related to the Company’s compliance with Islamic Shari’ah Provisions and providing adequate resources for implementation of Shari’ah governance requirements to ensure that the Company’s businesses are carried out in compliance with Islamic Shari’ah Provisions. |
| c. | Appointment of a qualified Internal Shari’ah Supervision Committee (“ISSC”) in accordance with the fit and proper requirements set out in this Standard. |
| d. | Establishment of Internal Shari’ah Control Division. |
| e. | Establishment of Internal Shari’ah Audit Division1. |
| f. | Publication of the ISSC’s Resolutions regarding the Company’s products, services, fees, and other basic mechanisms governing its operations. |
| 5.5 | This Standard must be implemented through a set of policies and procedures that outline the structure, roles, responsibilities, accountability, scope and duties of different functions, and reporting lines and communication channels between different functions with regard to the Company’s compliance with Islamic Shari’ah Provisions. |
| 5.6 | The Company must spread awareness regarding Takaful Insurance and boost the culture of compliance with Islamic Shari’ah Provisions within the Company, including conducting workshops for the members of the Board and Senior Management on Takaful Insurance and compliance with Islamic Shari’ah Provisions. |
1 The requirements stated in (d) and (e) are not related to the number of employees within the concerned division, as the division can be managed by one person. The number of employees required is subject to the size and nature of the business of each Company. The number of employees is determined, after consultation with the ISSC, to carry out their responsibilities.