Uzbekistan to Adopt International Islamic Finance Standards

The Central Bank of Uzbekistan has joined the Islamic Financial Services Board (IFSB), according to a statement from the Central Bank's press service, The Caspian Post reports citing Interfax.

"Membership of this organization will enable the Central Bank to study the experience of other countries and introduce international practices in the regulation and supervision of Islamic financial institutions," it said.

The Central Bank said the IFSB's mission was to develop international standards for the regulation and supervision of Islamic financial institutions, introduce corporate governance and risk management mechanisms, as well as conduct research and increasing human resource potential in this field.

Uzbekistan has already begun to develop an Islamic finance sector. A statute on the provision of Islamic finance services by microfinance organizations has been approved In accordance with a Central Bank resolution of July 2024. This document was based on Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards.

The IFSB was established in 2002 and is headquartered in Kuala Lumpur. The 188 members of the IFSB comprise 81 regulatory and supervisory authorities, 10 international intergovernmental organizations and 97 market players. The financial regulators of Kazakhstan, Kyrgyzstan and Tajikistan are IFSB members.