How do LFIs identify Shariah-compliant TPPs?

Date

Nov 14, 2024

Response

TPPs MUST declare whether they are Shariah compliant when they onboard to the Trust Framework. The declaration MUST be accompanied by evidence in the form of an Islamic version of any other CBUAE license that is already in place for the same entity that is onboarding as a TPP. The Shariah compliant information is communicated to LFIs through a flag at the entity level, which is retrieved by the API Hub and provided on each consent object. Conventional license holders who also offer Islamic products will not be able to obtain the Shariah compliant flag, as it only exists at the organisational level.

The tpp property included in consent objects includes a base64-encoded string, directoryRecord, which is a JSON object. The decoded JSON object will contain a property called Flags which is an array containing the flag data set for a TPP on the Trust Framework.

If the Shariah flag is set, meaning a TPP is Shariah compliant, then the data will appear as follows.

{
  "Flags": [
              {
                  "Name": "shariah_compliant",
                  "Type": "Organisation",
                  "Value": "True",
                  "Status": "Active",
                  "AccessLevel": 0,
                  "Id": "41b84225-1dc9-4c21-b505-474b9291ab25",
                  "CreatedAt": "2024-10-28T22:23:46Z",
                  "UpdatedAt": "2024-10-28T22:23:46Z"
              }
          ]
}

The API Hub sources the data from the Trust Framework so the structure of directoryRecord should be validated using the Raidiam API description.

The following link provides the API description: https://api.connect.raidiam.io/source.yaml.

Please refer to the 200 response payload for the operation get /organisations/{OrganisationId}, which is the source of the data.

Knowledge Base

How do LFIs identify Shariah-compliant TPPs?

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