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  • SG-A SG-A Introduction

    • SG-A.1 SG-A.1 Purpose

      • SG-A.1.1

        The purpose of the Module is to establish best practice Shari'a governance principles in Bahrain, and to provide protection for investors and other Islamic bank licensees' stakeholders through compliance with these principles.

        August 2017

      • SG-A.1.2

        Shari'a Governance can be defined as a system whereby a Bahraini Islamic bank licensee attempts to comply with Shari'a in all its activities. It is the duty of all the stakeholders to strengthen Shari'a Governance framework of their respective institutions. The main objectives of a Shari'a Governance framework are:

        (a) To provide a structure and a system to govern all the business activities of the Bahraini Islamic bank licensee in order to ensure Shari'a compliance at all times and at all levels.
        (b) To enable the Bahraini Islamic bank licensee to be perceived as Shari'a compliant by the stakeholders including the general public.
        August 2017

      • SG-A.1.3

        This Module provides support for certain other parts of the Rulebook, mainly:

        (a) High-level Controls;
        (b) Licensing Requirements; and
        (c) Training and Competency.
        August 2017

      • SG-A.1.4

        All references in this Module to 'he' or 'his' should, unless the context otherwise requires, be construed as also being references to 'she' and 'her'.

        August 2017

      • Legal Basis

        • SG-A.1.5

          This Module contains the CBB's Directive (as amended from time to time) relating to Shari'a Governance and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all Bahraini Islamic bank licensees (including their approved persons).

          August 2017

        • SG-A.1.6

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          August 2017

    • SG-A.2 SG-A.2 Module History

      • Evolution of the Module

        • SG-A.2.1

          This Module was first issued in [August 2017] by the CBB. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

          August 2017

        • SG-A.2.2

          The most recent changes made to this Module are detailed in the table below:

          Module Ref.Change DateDescription of Changes
          SG-4.1.110/2018Amended Paragraph.
          SG-5.2.301/2019Amended Paragraph to reflect activities hierarchy.
          SG-5.2.901/2019Added new Paragraph on IESCA communications.
          SG-3.1.2 & SG-4.1.201/2020Amended Paragraphs on policy and procedures approval.
          SG-5.1.110/2022Amended Paragraph on Independent External Shari’a Compliance Auditor appointment period.
          SG-2.5.401/2024Deleted reference.