The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) held the 28^th meeting of its Governance and Ethics Board (AGEB / the board) recently in Bahrain.

During the AGEB meeting, the board finalised and approved the issuance of GS 15 “Syndicated Financing” after addressing the comments received throughout the public consultation process and incorporating the necessary changes to the exposure draft.

The standard sets out the essential requirements related to Shari’ah compliance, transparency, fair dealings / avoidance of conflict of interest and other good governance practices as applicable at various stages / phases of a syndicated financing transaction.

In addition, the board reviewed and approved the exposure draft of the AAOIFI Standard On Auditing (SOA) 1 “Framework of Auditing” which aims to provide a comprehensive framework for an auditor for performance of an audit of the financial statements of an institution or entity that reports in line, and complies, with Shari’ah principles and rules.

The board also reviewed updates on the standards development and implementation strategy and the presentations of both the progress report for 2022 and the plan for 2023. The board further discussed significant issues in respect of the Tawarruq / Commodity Murabaha project.

The Chairman of the AGEB, Mr. Farrukh Raza, stated that: “I would like to thank the board members, the relevant working groups and the secretariat for their devotion, hard work, and commitment to AAOIFI’s cause”. He added that: “I am pleased that the board has approved the governance standard on syndicated financing and the exposure draft of SOA 1 “Framework of Auditing”. I am confident both standards will play a significant role in promoting integrity and strengthening the trust in the Islamic finance industry”.  

On this occasion, Mr. Omar Mustafa Ansari, Secretary General, AAOIFI stated that: “I would like to express my sincere gratitude to the board members and the relevant working groups for their dedication and efforts, and to all industry experts, Shari’ah scholars and market players who submitted their comments which have played a critical role in the improvement and finalisation of the GS 15 “Syndicated Financing”.