Before shedding light on the very important role of the Higher Religious Supervisory Board affiliated to the International Association of Islamic Banks, which is established to protect and enlighten the path of the march of Islamic banks as well as laying for them the solid and clear basis within the framework of the rulings of the glorious Shariah, we think that it is of the utmost importance to explain the pressing need and necessity to establish Islamic banks and financial institutions to keep safe the money of Moslems and protect the world against Riba "usury" and its dangers which destroyed homes, cut the links between individuals and their societies, and barred people from enjoying the pleasures bestowed on them by the rulings of the Islamic Shariah. It also exposes people to a holy war from Allah and the Prophet if they keep on dealing in Riba and give up the glorious Shariah rulings.

 Islam had brought along a complete system to human life in all aspects spiritual or material. Meantime, rulings of glorious Shariah are mainly concerned with human welfare, and as such, the Islamic financial system is rightly considered a unique human system. The principles of Islamic Fiqh (jurisprudence) are mainly concerned with money and its investment to such a point that all types of dealings and transactions are properly and precisely studied and deduced in fee light of the holy Quran and Sunna which embody treasures in this respect.

 Since the Islamic financial system is unique in the sphere of money, it is considered as an instrument for procurement of good and not an end in itself. On this system, are based the principles of the Islamic economy. This money system, moreover, is characterized by features distinct from other western or eastern economic systems. The rulings of money in Islamic Shariah do not -lead to the dominance of money but rather it commits it to many rights and duties.

 Being the backbone of life and fiscal power, Islam is highly concerned with money as a means to achieve power, invincibility, and victory over enemies. For this, the rulings" of the glorious Shariah take more interest in detailing money rulings and methods of its investment with a view to see what it includes of rights, and duties, negative and positive.

 The Holy Quran deals with money in many verses and so does the Sunna of the Prophet. They all clarify that it is Allah alone that has money in His possession and that the possession of money by humans is just a possession for temporary utility.

 Allah says that "Unto Allah belongeth the sovereignty of the heavens and the earth and whatsoever is therein, and he is able to do all things".

 Again He says "And bestow upon them of the wealth of Allah which He hath bestowed upon you". "The light 33".

 And again trusting us on money as He says "And spend of that whereof He hath made you trustees". (The Iron 7). Trustee here means that the possession of humans of money is a possession of temporary utility.

Clarifying the meaning of this possession Allah further says "Allah hath bought from the believers their lives and their wealth because the garden will be theirs" (Repentance III).

In "The winnowing winds 19" Allah says "And in their wealth the baggar and the outcast had due share". Though this line explains that money belongs to humans, it does not mean the real possession of it but the temporary possession. Man, however, is required to invest money properly and work hard to increase it.

 On the ground of this Islamic concept regarding possession of money by Allah and human beings, welfare of the society could be achieved and, consequently, money fails to have control over man. Money should not be a source of suppression or injustice done to anyone because money belongs to Allah and is given in "Trusteeship" to man who will be accounted it in the Day of Judgment whether it was spent in a legal manner or was misappropriated.

 ISLAMIC CONCEPT OF MONEY

 This Islamic system of money possession is a distinctive and unique system as we previously said. It is different from the unjust system of capitalism which gives money the upper hand on every thing and gives its possessor a free hand to use it as he wishes, without any control or questioning. It also contradicts communism which denies the existence of Allah, the Creator and the Mighty.   

The "Shariah" prescribes; the investment of money on a non-Riba basis. It is a fact that in the non-application of these rulings Riba prevailed the dealings of all economic systems, a system that diminished and even, eliminated goodness. "Allah hath blighted usury and made alms giving fuitful" (The Cow 276).

 Some people think that they cannot make their dealings except in conformity with this system which they consider workable and useful, and that it is impossible to return to the glorious Shariah in their transactions. They go further in their illusion saying that the application of the religious system in economic dealings will obstruct economic development and paralyze its movement and progress. They, of course, are mistaken in this thinking because the tenets of the dignified Shariah covering all aspects of life are suitable for all climes and times.

 The adoption of the western economic system, has led to a disturbing life and cutting off ties of kinship. People enquire whether the Islamic alternative would make people rich and enrich the economic life as well as keep people away from Riba-bearing dealings? This cherished alternative is included in the treasures of the glorious Shariah on which Islamic banks and other firms were established. This system, thanks to Allah has proved successful.

 But this awakening and revival is in need of protection and guidance to put it on the right path as drawn by the glorious Shariah in money dealings. Hence the decision of the Islamic countries Foreign Ministers Conference which stipulated the necessity for establishing a higher religious supervisory board to supervise Islamic banks and financial institutions and to put an end to contradictory views amongst these institutions.

 FORMATION OF SUPERVISORY BOARD

 To implement the decision of the conference which reflects the

increasing desire of the Heads of those governments to encourage the establishment of Islamic banks and financial institutions and protect their policies, all of which would operate within the framework of the Islamic Shariah, purifying money-dealings from the dirts of Riba, the Higher Religious Supervisory Board, was established by the International Association of Islamic Banks. It is formed of a group of long-experienced Grand Ulema of Islamic Jurisprudence and who are in the know of international commodity and stock exchange markets and the like.

 The by-laws and statutes governing work of the Higher Board were made in a manner which ascertains good supervision and control of the Islamic banks and financial institutions. This Board is also entrusted with making "fataws" which direct dealings and transactions in the proper path as prescribed in the Shariah.

 Article 2 of the Higher Board's statute stipulates that the Board is entrusted with the following:

 a)      To study the "Fataws" previously issued by the religious supervisory   boards   of   member-banks, in a bid to make decisions identical.

b)     To study the previously issued "Fataws" to see how far they conform to the rulings of Islamic Shariah.

c)      To supervise the activities of the Islamic banks and financial institutions, members of the Association to, ensure their conformity with the rulings of the Islamic Shariah. Besides, it has to draw the attention of the concerned parties to any potential violation of these activities. In discharging its duties, the Board has the right to go through the laws and by-laws of member-banks and financial institution and to draw their attention to whatever violation that might have been made in this respect. In so doing, top confidentiality must be observed.

d)     To issue legal religious opinions in banking and financial questions in response to requests by member Islamic banks and financial institutions, or their religious supervisory boards or the secretariat general of the Association.

e)     To study matters related to financial and banking operations presented by Islamic   financial institutions, seeking necessary advice.

f)      Decisions and Fatwas of the Board are obligatory and binding on member banks and financial institutions in case these were already approved by all members. However, any member-bank financial institution is entitled to ask for re-consideration of the decision by a detailed note. In case of disagreement, every-bank has to follow any of the two opinions, unless it is otherwise enforced by the Board.

g)      To clarify legal religious rulings of new economic questions which enshrine the real interest of Muslim countries.

 This article shows the vast authority enjoyed by the Higher Board towards verifying and supervising the dealings of these banks and financial institutions within the framework of the rulings of the Islamic Shariah. Besides, the Higher Board has the authority to call for seminars and conferences, to be attended by jurisprudents and Islamic economy scholar from all over the world to lay down a solid basis for any new economic questions previously mentioned.

  In confirming the above-mentioned targets, Article 2 of the Board's statute stipulates the following: "The Board is to base all its decisions and Fataws on the general and particular principles and teachings of the Shariah as stipulated in" the Holy Book and Sunna, regardless of any doctrine of any specific sect.

 This text asserts the task of the Higher Board in laying down the basis of economy within the framework of the rulings of Islamic jurisprudence and the general concepts of Islamic Shariah, without being subjected to any issue pertaining to dealings as prescribed in any specific sect. All the Higher Board's decisions are binding on member-banks and financial institutions as mentioned in Para (e) of Article 2.

 The Higher Board had requested all Banks and financial institutions at its previous meetings that their agreements of association should call for the establishment of religious supervisory boards consisting of Muslim jurists. It is not enough that a bank would appoint an adviser, in the belief that he alone can handle the entire work of the Board, but, instead, to form a board of not less than 13 jurisprudents and Islamic economy professors who should make have the final decisions in all matters.

 The Higher Religious Supervisory Board has been, and are still carrying out its duties in accordance with the decision of the Islamic countries Foreign Ministers Conference and the by-laws governing its work. As such, a bank cannot adopt the symbol of "working within the framework of the rulings of Shariah", while it is not implementing its tenets. It was the right of the International Association of Islamic Banks, since then, to unveil the name of any bank while has not observed the Shariah'.

 On this auspicious occasion, the Board is more than pleased to express its deep thanks and great respect to His Excellency the President of Pakistan for the initiation he had taken to Islamize banks and also for his patronage of all Islamic institutions. The Board also expresses its deep thanks and appreciation for those who have contributed to this international Islamic endeavor, the establishment of the Higher Religious Supervisory Board for Islamic banks and financial institutions.