Methodology & Framework
Shariah Screening Process

Transparent, consistent, and logically routed.

⚠️ A Note Before Anything Else:

Shariah compliance is not private property, and there is no single, universally agreed global standard for it. Different scholars, boards, and jurisdictions apply different — sometimes differing — thresholds and interpretations, each working in good faith from the same core sources. Onucrom is not a Shariah board. We do not issue fatwas, and we do not claim final authority over what is or isn't compliant for anyone's personal religious reliance.

What we do offer is a transparent, consistently-applied screening process, so you can see at a glance where something is likely to stand — and, just as importantly, see exactly why. Our rating is a directional signal, not a guarantee, and not a replacement for your own scholar's guidance on a matter of personal religious obligation.

1. The Core Principles (What we screen against)

Our screening methodology is rooted in identifying and isolating exposures to activities broadly recognized as non-compliant under Islamic commercial jurisprudence.

Riba (Interest / Usury)
Any guaranteed, fixed return on money lent. We screen out conventional debt instruments, fixed deposit schemes, and interest-bearing leverage structures.
Gharar (Excessive Uncertainty)
Contracts containing deception, unacceptable ambiguity, or undefined outcomes. We flag instruments lacking clear terms or relying on unknown future events.
Maysir (Gambling / Speculation)
Acquisition of wealth by chance rather than productive effort. We flag zero-sum derivative trading, betting structures, and pure speculative plays.
Prohibited Sectors (Haram)
Business activities explicitly forbidden, including: conventional banking/insurance, alcohol, pork, adult entertainment, and weapons manufacturing.
2. Our Assessment Approach

How an instrument receives its Shariah Alignment status on Onucrom.

📜
Path 1: Recognized Certification
If an asset is already confirmed by a recognized Shariah supervisory board, we do not second-guess it. To carry certified status, the asset must publicly disclose the certifying authority (and the committee chair, where available).
⚙️
Path 2: Screened via Onucrom
Where no recognized certification exists, you can apply our own 4-step open framework. This produces an independent estimate (clearly labeled as such), not a formal fatwa or certification.
3. Enter Onucrom Evaluation: Routing by Asset Type

We respect your time. Our system routes the asset into one of three lanes, skipping questions that mathematically or structurally do not apply to the instrument type.

Asset Lane Examples Screening Path Applied
Lane A: Equity / Business Listed Stocks, Private Equity, Startups Full Path: Certification → Prohibited Exposure → Financials → Instrument → Niyat
Lane B: Debt / Fixed-Income Bonds, Sukuk, Treasuries Instrument Core → Niyat (Skips business activity & financial ratios)
Lane C: Deposit / Savings FDR, Savings Accounts, Mudaraba Instrument Binary Check → Niyat (Fastest lane)
4. The Four-Step Independent Screening process (Path 2)

Our systematic approach to evaluating uncertified Lane A assets, drawing upon AAOIFI financial ratio standards.

1
Prohibited Exposure Filter
Equity/Business Only
We analyze the core business activity. Does the company operate in areas treated as impermissible (e.g., conventional banking, alcohol)? If exposure is minor/incidental rather than central, we record the percentage extent rather than applying an automatic failure, looking at both presence and materiality.
2
Financial Ratio Filter
Equity/Business Only
We apply AAOIFI-aligned ratio thresholds to the company's balance sheet (e.g., debt-to-assets, illiquid-to-total assets). Alongside the standard ratios, we ask one additional question: are the business's primary banking relationships with Islamic banks? This isn't a hard ratio threshold — it's a signal of the business's own orientation, treated as a useful supporting input, not a standalone pass/fail.
3
Instrument Filter
All Investable Assets
Separately from the business, we examine the investment vehicle itself. If a Halal business raises capital using a haram instrument (e.g., issuing an interest-bearing bond or guaranteeing a fixed return on equity), it is disqualified here.
4
Niyat (Intention) Filter
All Investable Assets
This step is about you, not the instrument. We ask a short question about your intention going in: are you approaching this as genuine holding/participation, or primarily chasing short-term trading gains? Your answer never changes the instrument's rating. What it does is generate a separate comment if your stated approach leans toward a pattern Shariah scholarship generally discourages — excessive short-term speculation — as a gentle flag, not a judgment, and entirely independent of whether the instrument itself passes or fails.
5. Understanding Our Assessment

Every completed assessment returns a clear visual rating, specific flagged concerns (identifying exact sources of Riba, Gharar, etc.), and a validity timestamp.

🟢 Green Shariah Compliant / Certified
🔵 Blue Appears Aligned (Not officially certified)
⚪ Grey Unclear / Insufficient Data
🟠 Orange Appears Not Aligned (Minor flags)
🔴 Red Non-Compliant (Major flags)
Validity Note: Our assessment reflects data available at the time it was generated. Financial ratios shift and certifications expire. Every rating carries a review window; if an asset passes this window, it will display a "Needs Re-Review" flag.