For the purposes of this Standard, the following words and phrases shall have the meanings stated below.

1. a. Senior Management: The executive management of the Institution housing an Islamic Window responsible and accountable to the Board for the sound and prudent day-to-day management of the financial institution, generally including, but not limited to, the chief executive officer, chief financial officer, chief risk officer, and heads of the compliance and internal audit functions. The term Senior Management includes the head of Islamic banking at the Institutions housing an Islamic Window.
    
2. b. Independence: Ensuring that the ISSC is not subject to any form of undue influence when issuing resolutions and fatwas in accordance with the Shari’ah parameters, and ensuring that the Internal Shari’ah Control Division or Section and Shari’ah Audit Division or Section are also not subject to any form of undue influence. This should be carried out to strengthen the confidence of both shareholders and stakeholders in the Institution housing an Islamic Window compliance with Islamic Shari’ah.
    
3. c. Internal Shari’ah Audit: regular process to inspect and assess Institution housing an Islamic Window’s compliance with Islamic Shari’ah and the level of adequacy and effectiveness of the Institutions housing an Islamic Window’s Shari’ah governance systems.
    
4. d. Compliance with Islamic Shari’ah refers to compliance with Islamic Shari’ah in accordance with:
   a. resolutions, fatwas, regulations, and standards issued by the HSA in relation to licensed activities and businesses of Institutions housing an Islamic Window (“HSA’s Resolutions”), and

   b. resolutions and fatwas issued by ISSC (“ISSC”) of respective Institution housing an Islamic Window, in relation to licensed activities and businesses of such institution (“the Committee’s Resolutions”), provided they do not contradict HSA’s Resolutions.

5. e. Shari’ah Supervision: monitoring of Institution housing an Islamic Window’s compliance with Islamic Shari’ah in all its objectives, activities, operations, and code of conduct.
    
6. f. Subsidiary: An entity, owned by another entity by more than 50% of its capital, or under full control of that entity regarding the appointment of its board of directors.
    
7. g. Affiliate: An entity owned by another entity by more than 25% and less than 50% of its capital.
    
8. h. Fatwas: juristic opinions on any matter pertaining to Shari’ah issues in Islamic finance, issued by HSA or ISSC.
    
9. i. Internal Shari’ah Supervision Division (or Section): a technical division (or section) in the Institution housing an Islamic Window with a mandate to support the ISSC in its mandate.
    
10. j. Internal Shari’ah Supervisory Committee (“ISSC”): a body appointed by the Institution housing an Islamic Window, comprised of scholars specialized in Islamic financial transactions, which independently supervises transactions, activities, and products of the Institution housing an Islamic Window and ensures they are compliant with Islamic Shari’ah in all its relevant objectives, activities, operations, and code of conduct.
     
11. k. Board: Institution housing an Islamic Window’s board of directors.
     
12. l. Group: A group of entities which includes an entity (the ‘first entity’) and:

    a. any Controlling Shareholder of the first entity;
    b. any Subsidiary of the first entity or of any Controlling Shareholder of the first entity; and
    c. any Affiliate, joint venture, sister company and other member of the Group.

13. m. Shari’ah Non-Compliance Risks: probability of financial loss or reputational risk that an Institution housing an Islamic Window might incur or suffer for not complying with Islamic Shari’ah.
     
14. n. Confidential Information: information that is publicly unavailable and where its disclosure is not allowed as per Article 120 of Decretal Federal Law No. (14) of 2018.
     
15. o. Higher Shari’ah Authority (HSA): is the Central Bank’s Higher Shari’ah Authority for Islamic banking and financial activities.
     
16. p. Islamic Window: refers to the licensed activities that are carried on in accordance with the Islamic Shari’ah that are carried on by financial institutions whether for their account or for the account of or in partnership with third parties which comply with the regulatory requirements stated in this standard and other regulations issued by the central bank.
     
17. q. High Quality Liquid Assets (HQLA): Assets unencumbered by liens and other restrictions on transfer which can be converted into cash easily and immediately, with little or no loss of value, including under the stress scenario.