DUBAI 19 May 2018: The Central Bank of the UAE (CBUAE) announced that, as of May 17, 2018, it will publish on its website, a list of foreign currency rates against the AED (Arab Emirates Dirham), to help UAE business entities calculate their VAT obligations to the UAE Federal Tax Authority.
This service is in line with the requirements of Federal Law No. 8 on Value Added Tax.
Meanwhile, the Supreme Shariah Committee for Financial and Banking Activities in the UAE met under the chairmanship of Dr. Ahmed Abdel Aziz Al Haddad.
Islamic Regulation
The board reviewed a number of issues related to the establishment of a unified legal governance framework for Islamic financial institutions.
The committee discussed a draft standard on the appointment of the members of the internal Shariah supervisory committees in the Islamic financial institutions, the eligibility criteria, efficiency and some related subjects, which will enhance the role of the internal Shari’ah supervisory committees in the Islamic financial institutions and the legitimate commitment that will reflect positively on the confidence of the clients in these institutions.
The board also discussed the possibility of applying the Shariah standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (IOFI) as standards for the minimum level of Shari’ah compliance, and considered the full commitment of the Islamic financial institutions to these standards and the possibility of applying the precautionary standards issued by the Islamic Financial Services Council.
Higher Shariah Authority
The Higher Shariah Authority (HSA) for financial and banking activities in the UAE also met.
The HSA discussed a number of matters relating to the creation of a unified Shariah governance framework for Islamic financial institutions (IFIs).
The HSA considered the draft standard on the appointment of the internal Sharia boards for IFIs and the fit and proper criteria in addition to some related titles. This standard is going to promote the role of the internal Sharia boards and strengthen Sharia compliance in IFIs which will reflect positively on customer confidence in IFIs.
The HSA considered the possible of adopting the Shariah standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as minimum standards for Sharia compliance. The HSA also considered the possibility of adopting the prudential standards issued by the Islamic Financial Services Board (IFSB).