Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
Established in 1990, an independent nonprofit organization that prepares accounting, auditing, governance, ethics and Sharia ( www.practicallaw.com/9-500-7092) -compliant standards for Islamic financial institutions and the industry. The AAOIFI has approximately 200 members from 45 countries, including central banks and Islamic financial institutions. The AAOIFI's standards are not binding on its members. However, several countries have adopted AAOIFI's standards and others have issued guidelines based on these standards.
The AAOIFI triggered controversy in 2008 when it claimed that more than 80% of sukuk ( www.practicallaw.com/6-500-6956) issued did not comply with Sharia principles and tightened the standards that sukuk must meet to comply with Sharia. However, despite this announcement, sukuk are still being issued that may not comply with AAOIFI's strict standards.
For more information on the AAOIFI, see Article, AAOIFI Statement on Sukuk and its Implications ( www.practicallaw.com/7-500-9431) .
For more information on Islamic finance in the US, see:
For more information on Islamic finance in the UK, see