IFSB

IFSB (Islamic Financial Services Board; Arabic: مجلس الخدمات المالية الإسلامية) is the international standard-setting body for prudential regulation and supervision of the Islamic financial services industry, headquartered in Kuala Lumpur, Malaysia. Established in 2002 under the aegis of the IMF and World Bank, IFSB sets prudential standards (capital adequacy, liquidity, risk management, governance) specifically tailored to the unique risk profiles of Islamic financial institutions. Key standards include: IFSB-1 (Capital Adequacy for IIFS), IFSB-2 (Capital Adequacy for Takaful), IFSB-4 (Disclosure), IFSB-7 (Capital Adequacy for Sukuk Securitisation), IFSB-8 (Takaful Governance), IFSB-15 (Revised Capital Adequacy), IFSB-17 (Core Principles for Regulation). Its 186 members include central banks, monetary authorities, multilateral institutions, and market participants from 57 countries. IFSB standards complement AAOIFI Shariah standards: AAOIFI governs contract permissibility, while IFSB governs the prudential treatment of those contracts. IOF's compliance engine implements both AAOIFI and IFSB standards for comprehensive regulatory coverage.