Shariah Compliance

At Silsilat, Shariah compliance is at the core of everything we do. We are committed to ensuring that all our operations, services, and transactions strictly adhere to Islamic financial principles. This page outlines our approach to Shariah compliance and the measures we take to maintain it.

Our Shariah Governance Framework

Our Shariah governance framework is designed to ensure that all aspects of our business are conducted in accordance with Islamic principles. This framework includes:

• Shariah Advisory Board: We have established a board of respected scholars specializing in Islamic jurisprudence and finance who provide guidance and oversight on all aspects of our operations.
• Shariah Compliance Department: A dedicated team responsible for implementing the recommendations of the Shariah Advisory Board and ensuring day-to-day compliance.
• Regular Shariah Audits: Independent reviews of our operations, transactions, and documentation to ensure ongoing compliance with Shariah principles.
• Continuous Education: Regular training for our staff on Islamic financial principles and their practical application in our business.

Islamic Financial Principles We Uphold

Prohibition of Riba (Interest)

We strictly prohibit any form of interest-based transactions. All our financing models are structured to avoid riba, using Shariah-compliant alternatives such as:

• Qard Hasan (Interest-free loan): In Ar-Rahnu, the principal component of the financing is considered an interest-free loan.
• Ujrah (Fee-based): We charge a safekeeping fee for storing the collateral, not interest on the loan amount.
• Wadiah (Safekeeping): The jewelry or assets pledged are held in trust as collateral, with the owner retaining ownership rights.

Avoidance of Gharar (Excessive Uncertainty)

We ensure that all terms, conditions, and pricing are clear, transparent, and agreed upon upfront to avoid any excessive uncertainty or ambiguity that could lead to disputes.

Prohibition of Maysir (Gambling/Speculation)

Our platform does not support speculative activities. All transactions are asset-backed and based on real economic activities.

Ethical Investments and Activities

We ensure that all transactions and investments facilitated through our platform are ethically sound and comply with Shariah principles. We avoid involvement with businesses dealing in prohibited goods and services such as alcohol, pork, gambling, adult entertainment, and other non-halal activities.

Ar-Rahnu Structure

Our Ar-Rahnu model is structured to comply with Shariah principles in the following ways:

1. Qard (Loan): The principal amount provided to the customer is considered a benevolent loan (Qard Hasan).
2. Rahn (Pledge): The customer pledges jewelry or precious metals as security for the loan.
3. Wadiah (Safekeeping): The pledged item is kept safely by the Ar-Rahnu operator throughout the financing period.
4. Ujrah (Fee): A safekeeping fee is charged for the storage and security of the pledged item, based on its value, not the loan amount.

Certification and Compliance

Our Shariah compliance is certified by recognized authorities in Islamic finance. We maintain regular reviews and audits to ensure ongoing compliance with the latest interpretations and standards in Islamic financial practices.

Additionally, we work closely with regulatory bodies to ensure that our operations not only meet Shariah requirements but also comply with relevant financial regulations.

Transparency in Operations

We are committed to transparency in all our operations. This includes:

• Clear disclosure of all fees and charges
• Transparent contract terms and conditions
• Regular reporting on Shariah compliance
• Open communication about our Shariah governance processes

Continuous Improvement

Islamic finance is a dynamic field with ongoing scholarly discussions and interpretations. We are committed to continuous learning and improvement in our Shariah compliance practices. We regularly review and update our policies, procedures, and products to align with the latest developments in Islamic financial thought.

If you have any questions or require further clarification about our Shariah compliance practices, please don't hesitate to contact us.