The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held the 15th meeting of its Governance and Ethics Board (AGEB / the board) on 10 and 11 June 2020 via video conference.

Mr. Omar Mustafa Ansari, Secretary General (SG) of AAOIFI, opened the meeting and welcomed all the members. The SG announced the election of Mr. Farrukh Raza and Dr. Walid Hegazy as Chairman and Deputy Chairman of AGEB, respectively.

The board discussed and approved the statement on application of AAOIFI governance, ethics and auditing standards in view of the impact of COVID-19 pandemic. The statement provides clarifications and interpretations as well as flexible options to the Islamic financial institutions for the application of AAOIFI governance, ethics and auditing standards considering certain pertinent issues arising due to economic factors and regulatory interventions in the wake of COVID-19 pandemic. After completing due process, the statement will be issued shortly.

In addition, the board elaborated on the AGEB work plan for the term (2020-2023). The discussion was on the existing projects that were carried forward from the previous term including amongst others Waqf governance, external Shari’ah audit guidelines / handbook, and Shari’ah decision making. The board further deliberated on various new projects and proposed to develop new standards on Islamic crowdfunding, Shari’ah compliance and fiduciary ratings for instruments, internal Shari’ah audit guidelines as well as commodity Murabaha governance. The board approved the timelines and the appointment of working group members.

Mr. Farrukh Raza, Chairman of AGEB stated: “being elected as the Chairman of AGEB is a big responsibility and I appreciate the trust of the board I ask Allah the Almighty to guide us in carrying out this significant duty of addressing the key challenges and issues in the Islamic finance industry. I hope to serve the cause of AAOIFI and the Islamic finance industry by further strengthening the stakeholders’ confidence in the fast-growing Industry”. He added, “the expanding size of the industry underscores the importance of a strong governance framework to ensure stability and resilience”.

Dr. Walid Hegazy, the Deputy Chairman of AGEB stated: “I would like to thank the secretariat for carrying out the election process in a transparent and confidential manner which is an evidence of good governance practice. It is a pleasure to work with distinguished experts and professionals to develop standards that standardize and harmonize the Islamic finance industry”.

On this occasion, Mr. Omar Mustafa Ansari, the SG, AAOIFI stated: “the participation of all members in the meeting despite the current global pandemic is an evidence of their dedication and commitment”. He added, “I would like to congratulate Mr. Farrukh Raza and Dr. Walid Hegazy on their election, and I am certain that AGEB will achieve great successes under their leadership and with the support of all members”.