LIIFE provides a High-quality Islamic finance consultancy and advisory to meet the expectation of the clients and partners, provided by experts professional in Islamic finance. Shari’ah Advisory for Islamic Finance Services offered by LIIFE refers to specialized guidance and oversight to ensure that financial activities, products, and services comply with Islamic principles and Shari’ah law. These principles are derived from Shari’ah emphasizing ethical, interest-free, and risk-sharing financial practices.
Key Functions of Shari’ah Advisory in Islamic Finance:
Among the key Shari’ah Advisory services offered by LIIFE includes the following activities:
- Shari’ah Compliance: Ensuring all financial products, contracts, and activities adhere to Islamic principles. Prohibited elements include: Riba (Interest), Gharar (Excessive Uncertainty), and Prohibited Activities such as gambling.
- Product Structuring: Developing Shari’ah-compliant financial instruments such as:
- Murabaha: Cost-plus financing.
- Ijarah: Lease-based financing.
- Mudarabah: Profit-sharing investment.
- Sukuk: Islamic bonds.
- Takaful: Islamic insurance.
- Shari’ah Auditing and Governance:
- Reviewing and certifying the operations of financial institutions to maintain compliance.
- Establishing a Shari’ah Supervisory Board (SSB) composed of scholars and experts to oversee financial practices.
- Risk Management:
- Advising on risk-sharing mechanisms in line with Shari’ah principles.
- Avoiding speculative instruments like conventional derivatives.
- Zakah, Waqf, and Social Responsibility:
- Advising on Zakah (mandatory almsgiving) calculation and distribution.
- Managing Waqf (endowments) for social welfare purposes.
- Promoting ethical investments that benefit the community.