Shariah and regulatory approval support
For Muslims, Shariah governs and regulates every aspect of life. Its literal meaning is “the way” or “the right path”. It derives from the Quran—the Creator's revelation to mankind—and the Sunnah, the statements and actions of Prophet Mohammed.
The Sunnah is considered the second source of revelation. It explains the Quran by clarifying its general statements and intended meanings. Everything in the Sunnah is therefore addressed in the Quran, either by inference or direct reference.
The Sunnah is collected in its entirety in the books of Hadeeth. The study of Hadeeth is a highly developed and established science in its own right.
Most institutions and banks have a committee of distinguished scholars who assess whether products comply with Shariah, drawing on the Quran and Sunnah. Banks and other financial firms need Shariah approval to operate in Islamic finance.
Some jurisdictions, including Hong Kong and Malaysia, have Shariah Advisory Councils. In other jurisdictions, a company must appoint its own Shariah board.
The Sunnah is considered the second source of revelation. It explains the Quran by clarifying its general statements and intended meanings. Everything in the Sunnah is therefore addressed in the Quran, either by inference or direct reference.
The Sunnah is collected in its entirety in the books of Hadeeth. The study of Hadeeth is a highly developed and established science in its own right.
Most institutions and banks have a committee of distinguished scholars who assess whether products comply with Shariah, drawing on the Quran and Sunnah. Banks and other financial firms need Shariah approval to operate in Islamic finance.
Some jurisdictions, including Hong Kong and Malaysia, have Shariah Advisory Councils. In other jurisdictions, a company must appoint its own Shariah board.
