Sharia & governance
Halal by structure, evidence and conduct.
We describe principles precisely, state governance status plainly, and claim nothing that has not been independently approved.
Principles
Six commitments behind every transaction.
Real assets
Every transaction is linked to a real good, service or supplier obligation.
Direct payment
Funds are paid directly to suppliers through licensed partners.
Fixed economics
Transaction economics are fixed and disclosed upfront.
Governed contracts
Contract selection follows approved product and asset rules.
No interest on lateness
Late payment never generates interest or income for KHATT; a board-approved charity clause directs any such amounts to sadaqah.
Independent review
Independent Sharia review and periodic audit are required.
Controls
Four controls, designed to be non-switchable.
Designed to structurally prevent non-compliant transactions — compliance executes as workflow, and exceptions escalate to qualified scholars.
Evidence gate
No contract issues until ownership, possession or service-right evidence is collected and validated.
Template approval
Only contract templates approved through the Sharia governance process can be used — no free-text contracts.
Maker-checker payment
Two-person authorisation on every payment instruction, executed by licensed partners to verified supplier accounts.
Hard-coded prohibitions
No interest, no late-payment income, no gain on receivable sales, no guarantee fees, no unrestricted cash — designed into the platform, not policy alone.
Status
Where governance stands — stated plainly.
What exists now
- Sharia architecture v1.0 complete, designed with reference to AAOIFI standards and subject to Sharia Supervisory Board approval.
- The SSB charter is drafted and scholar appointments are underway.
- No fatwa, certification or legal opinion exists yet — and we say so plainly.
- Operations do not begin before appointments are confirmed; any payment outside a gate halts all transaction activity pending review.
What comes with appointment
- An independent Sharia Supervisory Board reporting to the Board of Directors — not to management.
- Template approval, transaction sampling and the authority to halt any transaction.
- Every pilot transaction sampled for Sharia review.
- Independent annual Sharia audit alongside external financial audit.
Lifecycle
Design → Approve → Pilot → Automate → Assure
Design
Structures drafted with qualified advisers, against approved product and asset rules.
Approve
Independent board review of products and transaction templates.
Pilot
Every pilot transaction is sampled and reviewed.
Automate
Rules and evidence engines carry only the approved logic.
Assure
Independent annual Sharia audit, with reconstruction-ready records.
Three lines of defence
Any line can stop a transaction. None can start one alone.
The business proposes. Risk and compliance verify and hold the checker role. Independent Sharia governance and external audit assure. The platform must never be presented as an autonomous fatwa system — exceptions always escalate to qualified scholars.
Responsible AI. AI supports decisions. Material credit, compliance and Sharia decisions remain accountable to qualified humans.
Sadaqah commitment. A stated policy commitment allocates 20% of platform profit to sadaqah once profits exist — and late payment is never an income source.
KHATT’s structures are subject to final legal documentation, regulatory approval and independent Sharia review in the relevant jurisdiction. KHATT does not describe itself or its products as Sharia-certified, and will not until certification by the appointed independent Sharia board is complete. Read the full disclaimer.
Ask us the hard questions.
Sharia governance is the product. We welcome scrutiny from scholars, institutions and regulators.