Section 5Sec./Art. 5

Shariah Advisory Councils. It shall be the responsibility of an Islamic bank to comply with Shariah principles. For this purpose, it shall constitute a Shariah advisory council composed of persons who are qualified in Shariah or who have knowledge or experience in Shariah and in banking, finance, law or such other related disciplines. The council shall render advice and review applications of Shariah principles, but it shall not involve itself directly in the operations of the Islamic bank or engage in any activity which may give rise to conflict of interest. Nothing contained herein precludes the establishment of a centralized Shariah Supervisory Board to ensure that the Islamic banking transactions and products comply with Shariah principles.