INTERNATIONAL STANDARDS FOR REGULATING ISLAMIC FINANCE

Abstract

This study examines the international standards and regulatory frameworks governing Islamic finance. It analyzes the role of organizations such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB) in promoting standardization, transparency, and Shariah compliance in Islamic financial institutions worldwide. The research highlights the importance of harmonized guidelines for reducing operational, financial, and Shariah compliance risks while facilitating the integration of Islamic finance into global financial systems. Findings indicate that while international standards provide a robust framework, challenges remain in standardization due to regional differences, evolving financial instruments, and technological developments.