Foundations of Shari'ah Governance of Islamic Banks

Appendix 3.1

Appendix 3.1 Legal and Regulatory Framework for IFSI in Jurisdictions with Known IIFS Presence

Country (in alphabetical order)	Supervisory Authority	Financial Sectors	Primary Law/Regulation for IFSI	Essential Features	Development of IIFS
1. ALGERIA	Banque d’Algérie	Banking	Ordinance no. 03-11 relating to currency and credit and addresses regulations including the local currency; banking operations; required authorizations and approvals; control of banks; and exchange controls. The Ordinance is complemented by 80 regulations which themselves are also complemented and implemented by notes and instructions.	All banking and financial activities in Algeria, including those by IIFS, are regulated by the Central Bank. In order to operate, IIFS in Algeria must obtain prior approval from the Central Bank pursuant to Regulation no. 93-01 of 3 January 1993 as modified by Regulation no. 2000-02 of 2 April 2000.	The first IIFS is Banque Albaraka d’Algérie (1991) and it remains the only IIFS in Algeria.
2. BAHRAIN	Central Bank of Bahrain	Banking, insurance and capital market	Prudential Information and Regulatory for Islamic Banks (PIRI), 2000.	The PIRI covers areas such as capital adequacy, asset quality, management of investment accounts, corporate governance and liquidity management. The not-for-profit Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) was established in 1991 and issues standards on accounting, auditing, governance and ...