The framework, aimed at institutionalizing the shariah compliance function in IBIs, will be applicable from Oct. 01, 2014, said a SBP release here on Friday.
It explicitly defines the roles and responsibilities of all organs of IBIs including their board of directors, executive management, shariah board, shariah compliance department and internal and external auditors towards shariah compliance.
The framework requires IBIs to constitute shariah boards comprising at least 3 shariah scholars meeting SBP fit-and-proper criteria, along with prescribing an effective mechanism for the BOD oversight of shariah compliance environment and introducing external shariah audit requirement for IBIs.