New York based investment platform Wahed Invest LLC (“Wahed Invest”) has received an associate membership approval from the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). AAOIFI regulates and standardizes accounting, auditing and governance practices for the Islamic finance industry in line with international standards that comply with Islamic rules. Wahed Invest founder and CEO Junaid Wahedna said: “As Wahed continues to grow and innovate, it's important that our clients and partners know that we are committed to halal practices. Wahed’s qualification for the AAOIFI membership is a step towards reposing confidence with our customers and demonstrates our adherence to sound halal practices and policies.”
A recent pronouncement by the United Arab Emirates requires all full-fledged Islamic banks, Islamic windows of conventional banks and finance companies offering Sharia-compliant services in the UAE to comply with AAOIFI standards in effect from September 1, 2018.
“Spurred by continued growth in halal investments, UAE leadership has implemented rules encouraging standardization and harmonization of international Islamic finance practices and financial reporting in accordance to Shari’ah,” said Omar Ansari, Acting Secretary General at AAOIFI. “The new decree also entails a revision of existing products and services of Islamic institutions to comply with AAOIFI standards. One of the region’s first fintech startups, Wahed Invest is showing strong direction in the field of Islamic finance by becoming an associate member.”
Wahed Invest offers investors of all income brackets the exposure to a globally diversified portfolio of Shariah-compliant financial products and services in a transparent manner. It ensures Shariah-compliant investing principles are considered by screening stocks for tobacco, alcohol, firearms, gambling, adult entertainment, non-compliant foods, usurious institutions, excess debt and excess interest income.
In addition to the UAE, AAOIFI standards have been fully or partially adopted in more than 19 countries and as recommended guidelines by the regulatory bodies of more than seven other jurisidictions. AAOIFI members include prominent scholars such as Mufti Taqi Usmani and Dr. Aznan Hassan, who is also a member of the Wahed Invest Shari’ah review board.
