The Shariah Screener is a tool designed to help clients identify investments that align with Islamic (Shariah) principles. When this feature is enabled, a Halal badge (a Shariah screening indicator) will appear on assets that are considered Shariah-compliant based on the third-party screening.
Enabling the Shariah Badge
The Shariah Screener is turned off by default. To enable it:
- Navigate to Account Settings
- Select “Shariah Compliant”
- Activate the toggle
Once enabled, the Halal badge will be visible across eligible assets within the application.
Visibility of the Shariah Badge
The Halal badge will only appear under the following condition:
- The asset has been confirmed as Shariah-compliant by the third-party screening provider.
The badge will not appear if:
- The asset is not Shariah-compliant
- The asset is classified as doubtful
- There is insufficient information available (for example, certain asset classes such as cryptocurrencies)
Shariah Compliance Details
For each asset, a Shariah Compliance Report is available. This report provides:
- Compliance status (Compliant, Doubtful, or Not compliant)
- A compliance grade (ranging from C- to A+) reflecting the strength of compliance relative to the screening methodology’s thresholds.
- A detailed breakdown of:
- Business activities
- Interest-bearing assets
- Interest-bearing debt
Understanding Shariah Statuses
- Shariah Compliant: The asset meets established Shariah criteria applied by the third-party provider.
- Doubtful: Certain criteria are unclear or borderline. Clients with concerns about doubtful assets are strongly encouraged to consult a qualified Shariah scholar.
- Not compliant: The asset does not meet Shariah standards
- No information: A compliance report is not currently available
Understanding the Compliance Grade
The assigned grade reflects the strength of Shariah compliance:
- A+: Indicates the highest level of compliance
- Lower grades (e.g. C): Indicate compliance that is closer to the acceptable thresholds
Asset Coverage
Not all assets are currently covered by Shariah screening data. Some assets may not have compliance reports available at this time. For example, cryptocurrency assets currently do not have Shariah compliance reports, and therefore, no badge will be displayed.
About the Third-Party Provider
Sarwa obtains Shariah screening data from a third-party provider, Musaffa LLC, Musaffa LLC (“ Musaffa”), a U.S. SEC-registered investment adviser (RIA) ( CRD #338525 / SEC #801-134527 )..
Please refer to the provider here for more information.
Disclaimer
The Shariah Screener is provided as a guidance tool only based on third-party screening data and screening methodologies. It should be used for reference purposes only, and clients are encouraged to make investment decisions in line with their individual preferences. Sarwa obtains information regarding Shariah-compliant assets from a third-party provider. Sarwa does not hold an Islamic Window endorsement from the Financial Services Regulatory Authority (FSRA). Clients are advised to conduct their own due diligence to ensure that investments align with their personal requirements.