IslamicFinance.de

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has signed an MOU with the Participation Banks Association of Turkey (TKBB) to collaborate in the promotion of Islamic finance in Turkey. AAOIFI and TKBB agreed to work in areas of common interest, such as the meaningful exchange of information and conducting joint capacity-building programmes. Osman Akyüz, the Secretary General of TKBB, said that they would also focus on increased representation of Turkish experts in AAOIFI’s boards and committees. AAOIFI Secretary-General Omar Mustafa Ansari emphasized the role of TKBB for the growth of Islamic finance in Turkey and assured the full support of their initiatives and activities.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) is close to finalising governance and sharia standards for Islamic endowments, known as awqaf. Deputy Secretary General Omar Mustafa Ansari said the development of an accounting standard for awqaf was underway. A governance standard for awqaf would provide guidance on internal controls, policies and procedures, transparency and disclosures. According to a Dubai government estimate, awqaf may hold around $1 trillion in assets around the globe. Most awqaf do not disclose full financial figures, although their underperformance is believed to be considerable since they are run by administrators rather than return-oriented investment managers.