SHARIAH GOVERNANCE AND THE COUNCIL FOR ISLAMIC FINANCE IN UZBEKISTAN: CHALLENGES OF ALIGNMENT WITH AAOIFI STANDARDS
Ravshanov Farrukhbek Shavkatbek ugli
Master’s student, Banking and Finance Academy of the Republic of Uzbekistan
Keywords: Shariah governance, AAOIFI, IFSB, Council for Islamic Finance, Islamic banking, Central Bank of Uzbekistan, conflict of interest.
Abstract
Uzbekistan legalised Islamic banking through Law No. ZRU-1126 of 27 March 2026, which came into force on 29 June 2026. The law places Shariah governance at the core of the new dual banking system. It creates a national Council for Islamic Finance under the Central Bank of Uzbekistan (CBU) and requires every Islamic bank and window to maintain its own Shariah council. This thesis examines how far this emerging two-tier model is aligned with the standards of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). Using a qualitative review of the new legislation, CBU regulations and international standards, and a comparison with Malaysia, Bahrain and Kazakhstan, the study identifies four alignment challenges: the legal status of AAOIFI standards, accounting and reporting, Shariah audit, and the independence and supply of qualified scholars. It concludes with policy recommendations for the CBU and the Council.
