Azentio iMAL

Islamic banking prohibits interest (riba) and avoids speculative transactions (gharar). Instead, it emphasizes asset-backed financing and risk-sharing partnerships. Conventional banking, by contrast, is interest-based and often involves greater exposure to debt and derivatives.

Riba is the practice of charging interest, and it’s strictly prohibited in Islamic law. It’s considered exploitative and contrary to the ethical and moral principles of Islam. Islamic finance encourages equitable wealth distribution and mutual benefit, which riba undermines.

Takaful is a cooperative Islamic insurance model where participants contribute to a shared pool to cover each other’s losses. Unlike conventional insurance, Takaful is based on mutual responsibility and avoids interest, gambling (maysir), and uncertainty (gharar), all of which are prohibited in Islam.

AAOIFI stands for the Accounting and Auditing Organization for Islamic Financial Institutions. It is the global standard-setting body for Islamic finance, headquartered in Bahrain. AAOIFI issues authoritative standards on:

• Shariah compliance
• Accounting practices
• Governance
• Ethical conduct

Why AAOIFI certification matters:

• Ensures authenticity and alignment with Shariah law.
• Provides trust and credibility with regulators, scholars, and customers.
• Signals to Islamic financial institutions that a product or system (like Azentio’s iMAL) has been rigorously reviewed and approved.
• Azentio's iMAL solution is AAOIFI-certified, demonstrating our deep commitment to Shariah compliance and international best practices.

Not necessarily. While the structure of Islamic financial products may differ (e.g., profit-based instead of interest-based), they are often competitively priced. In fact, many customers value the ethical framework and transparency that Islamic finance offers.

Islamic banking supports real economic development by financing tangible assets and productive ventures. It also:

• Encourages long-term partnerships
• Supports small and medium enterprises (SMEs)
• Fosters financial inclusion across underserved populations