6.1. Islamic Window - Definition

If an Authorised Firm conducts a part (but not the whole) of its business in a Shari’ahcompliant manner, the part so conducted in a Shari’ah-compliant manner, is an Islamic window.

6.2. Operation of Islamic windows

(1) An applicant for authorisation that proposes to operate an Islamic Window must state that fact in its application.

(2) An Authorised Firm that proposes to operate an Islamic Window must apply to the AFSA for an appropriate variation of the conditions of its authorisation.

(3) An Authorised Firm that operates an Islamic Window:

(a) must identify the part or parts of its business that are to be conducted in accordance with Shari’ah; and

(b) must establish and maintain policies, procedures, systems and controls that ensure that the part or those parts are so conducted.

(4) An Authorised Firm that operates an Islamic Window must comply with:

• (a) Chapter 3 of this IFR Rules;
• (b) Chapter 4 of this IFR Rules;
• (c) Chapter 5 of this IFR Rules; and
• (d) Chapter 6 of this IFR Rules. in relation to the part or parts of its business conducted by means of the window.

(5) For the application of Chapters 3, 4, 5 and Chapter 6 to such an Authorised Firm, references to an Islamic Financial Institution are to be read as including references to an Authorised Firm that operates an Islamic Window.

(6) The Islamic Window must ensure that the disclosures required by AAOIFI FAS 18 “Islamic Financial Services offered by Conventional Financial Institutions” are made to each client with whom, or on whose behalf, it conducts Islamic Financial Business.

6.3. Performance of internal Shari’ah review

(1) An Authorised Firm that operates an Islamic Window must, to the extent possible, perform the internal Shari’ah review in accordance with the AAOIFI Standards on Governance (GSIFI No. 3).

(2) If the firm cannot perform its entire internal Shari’ah review in accordance with those standards, it must document how it will perform the remainder of that review.

(3) An Authorised Firm that operates an Islamic window must perform an internal Shari’ah review of the firm’s compliance with fatwas, rulings and guidelines issued by its SSB.