Licensed Financial tostitutions that conduct all or part of their activities and businesses in accordance with Islamic Shari’ah Law are required to provide the Higher Shari’ah Authority with an annual Shari’ah report that is prepared by the Internal Shari’ah Supervision Committee.
According to Article 80 of the Central Bank Law, the annual Shari’ah report is required to be provided to the Higher Shari’ah Authority before the end of February every year. The toternal Shari’ah Supervision Committee shall provide the Higher Shari’ah Authority with a copy of its report, no later than 2 months from the end of the financial year, in order for the Authority to express its remarks prior to the meeting of the general assembly of the concerned institution.
Failure of the Licensed Financial Institutions to comply with its obligation to submit the annual Shari’ah report is a violation and will result in a fine of AED 5,000.
A daily rate of AED 5,000 will be applied for the delay of each working day that continues after the initial violation with a maximum threshold of AED 500,000 for each violation.
A fine of AED 50,000 will be applied if the Licensed Financial Institution submits erroneous data in any of the regulatory returns.