Implementation of Sharia Compliance in Islamic Banking Products

Abstract

This study aims to develop an evaluation model for assessing the Sharia compliance of Islamic banking products and to provide a structured framework that supports regulatory and operational alignment within Islamic financial institutions in Indonesia. A qualitative approach was employed using a literature review method, drawing on authoritative sources such as DSN-MUI fatwas, AAOIFI standards, OJK regulations, and previous studies related to Sharia governance and compliance practices in Islamic banking. The collected data were analyzed using thematic analysis to identify recurring patterns, conceptual categories, and key indicators relevant to the evaluation of Sharia-compliant products. The findings indicate that the proposed model consists of several core dimensions, including adherence to fatwas and foundational Sharia principles, the effectiveness of Sharia governance with emphasis on the role of the Sharia Supervisory Board, the clarity of contracts and transparency of product information, and the continuity of monitoring and remediation mechanisms. This model offers a comprehensive framework that can assist Islamic banks in strengthening their internal Sharia audit processes, improving product development practices, and ensuring consistent compliance across operational activities.