1. Without prejudice to any provision contained in the legislation in force in the State, any Person subject to the supervision of the Authority may conduct Financial Activities or issue Financial Products that are compliant with the provisions of Islamic Shari’ah. 2. The Higher Shari’ah Authority (HSA), established pursuant to the applicable Central Bank Law, shall determine the types of Financial Activities and issuances of Financial Product that the Persons referred to in Clause (1) of this Article may undertake. The Higher Sharia Authority shall also establish the general Shari’ah controls, standards, and general principles governing such Financial Activities and Financial Products. 3. The Persons referred to in Clause (1) of this Article shall comply with the following: a. The Shari’ah rules, controls, standards, and general principles, established by the Higher Shari’ah Authority. b. Contribution to the expenses of the Higher Shari’ah Authority, including allocations, remunerations, and other costs of its members, in accordance with the charter of the Higher Sharia Authority. c. Appointment of an internal Shari’ah supervisory committee, approved by the Higher Shari’ah Authority, composed of persons with expertise and specialization in issuing fatwas in Islamic financial jurisprudence, in addition to compliance with any conditions or requirements determined by the Authority. The Higher Shari’ah Authority may exempt a Person from this obligation based on the scale or nature of the business that may not necessitate the establishment of such committee, after verification of the existence of equivalent procedures that ensure the compliance of the persons referred to in Clause (1) of this Article with the provisions and principles of Islamic Shariah. 4. Any Person referred to in Clause (1) of this Article shall be exempt, in respect of their Shariah-compliant Financial Activities or issuance of their Financial Products, from any registration requirements, fees, or similar charges for any asset purchased or sold, in whole or in part, whether leased, rented, manufactured, or otherwise, provided that such activities or issuances form part of the Person’s Shari’ah-compliant business. 5. A Person referred to in Clause (1) of this Article shall be deemed compliant with the provisions and principles of Islamic Shari’ah upon its adherence to the decisions, regulations, and standards issued by the Higher Shari’ah Authority. 6. Where it is established that a Person referred to in clause (1) of this Article has conducted activities in violation of the provisions and principles of Islami Shari’ah, in accordance with the rulings, decisions, and standards of the Higher Shari’ah Authority or the Authority, such Person shall be subject to measures and sanctions prescribed by the Authority after consultation with the Higher Shari’ah Authority. 7. The Authority shall adhere to the following: a. Provide technical support to the Higher Shari’ah Authority to enable it to carry out its duties in relation to Sharia-compliant Financial Activities and Financial Products issuance. b. Submit drafts of legislation regulating Financial Activities and businesses that are compliant with the provisions of Islamic Shari’ah to the Higher Shari’ah Authority for approval prior to issuance. 8. The approved charter of the Higher Shari’ah Authority shall determine any specific controls or procedures thereof, and shall also specify any additional powers relating to supervision and inspection.
Interpretation and application must be checked against the official text and current version.