One month after the WAEMU adopted a regulation aimed at modulating Islamic securities, the local financial markets authority (AMF-UMOA) signed an instruction setting out the guidelines for Islamic mutual funds’ operations.

In an instruction effective since February 20, 2023, the West African financial markets authority AMF-UMOA set the guidelines for the creation and operation of Islamic Collective Investment Schemes (CIS), which includes equity funds and investment companies.

The document informs that a compliance board (Sharia Board) is in place to certify that financial securities issued on the market comply with Islamic Finance rules. Therefore, any player that plans to carry out Islamic finance-related activities, issue Islamic securities, or Islamic mutual funds wishing to operate in the WAEMU region must seek the compliance council’s approval.

Well before this instruction, in February 2022, the AMF-UMOA issued a draft instruction for Islamic mutual funds wishing to carry out Islamic Finance-related activities in the West African financial market. In January 2023, the West African Economic and Monetary Union (WAEMU) adopted a regulation on Islamic securities, sukuk issuance companies, and sukuk issuance funds. This regulation aimed to organize the use of Islamic securities in the West African financial market.

Chamberline MOKO