Banky team Reviewed editorial answerWithin an Islamic institution, there is a Sharia governance system, the most important elements of which are a Sharia supervisory board or body and Sharia compliance review and enforcement functions, depending on the institution's structure.
Key points
However, a product's Sharia certification does not negate the need to understand its costs and risks.
"Sharia-compliant" describes the product's structure; it does not necessarily mean it is financially better for every customer.