Islamic Financial Services Board


The Islamic Financial Services Board is an international body that sets standards and offers guidance for Islamic banking and finance regulatory and supervisory agencies. It is based in Kuala Lumpur, Malaysia, and began operations in early 2003. As at December 2018, the 180 members of the IFSB comprise 78 regulatory and supervisory authorities, 8 international inter-governmental organisations, and 94 market players operating in 57 jurisdictions.
It was founded by "a consortium of central banks" and the Islamic Development Bank. The country of its location, Malaysia, passed a special law the year the IFSB was established -- the Islamic Financial Services Board Act 2002 -- giving the IFSB the usual "immunities and privileges" international organizations receive.
In 2005 the IFSB mandate was extended to include supervisors and regulators of insurance and securities markets. A of 2013 the IFSB has issued 19 "Standards, Guiding Principles and Technical Note".
The International Islamic Financial Market is a part of IFSB that standardizes Islamic capital market products and operations, though as of 2013 its recommendations were "not implemented by most Islamic banks". It was founded in November 2001 through the cooperation of the governments and central banks of Brunei, Indonesia and Sudan. Its secretariat is located in Manama Bahrain.
According to one source the Islamic Financial Services Board differs from the other Islamic financial standards organ, the AAOIFI, in that