AAOIFI’s Governance and Ethics Board, in Principle, Approves Exposure Draft of the Governance Standard on Islamic Crowdfunding 

On the 15th and 16th of June 2021, the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) held its 21st meeting of its Governance and Ethics Board (AGEB) via video conference. Primarily, the board discussed the exposure draft of the governance standard on Islamic crowdfunding.

Why it Matters?

The aim of the exposure draft is to lay out a comprehensive framework for good governance of Islamic crowdfunding to overcome the significant risks of Shariah non-compliance and fraudulent practices in the crowdfunding industry, according to Farrukh Raza, Chairman of the AGEB. Adoption of this standard at an early stage of a nascent sector is expected to contribute to the sector’s growth by guiding stakeholders and regulators...