Whereas, proper licensing of a takaful operator or authorization of a takaful window operator is important to ensure the safety and soundness of the insurance sector;

Whereas, it becomes necessary to establish a mechanism of regulating takaful business and set requirements and minimum standards for operation of takaful business and to protect the interest of participants;

Now, therefore, in accordance with article 60(1 & 2) and 64(2) of the Insurance Business Proclamation No.746/2012 as amended by the Insurance Business (Amendment) Proclamation No.1163/2019, the National Bank of Ethiopia has issued this directive.