Optimizing The Role of The Sharia Supervisory Board In Realizing Sharia Compliance and Transparency: Fraud Prevention Efforts from The Perspective of Maqashid Sharia

ABSTRACT : This study aims to analyze the optimization of the role of the Sharia Supervisory Board (DPS) in realizing sharia compliance and transparency as an effort to prevent fraud in Sharia Financial Institutions (LKS) from the perspective of maqashid sharia. The research method used a descriptive qualitative approach through literature study and field data obtained from interviews and questionnaires with the DPS, management, and auditors of LKS. The results showed that the DPS plays a strategic role not only as a formal supervisor of sharia compliance but also as a guardian of maqashid values oriented towards benefit and the prevention of harm. The active involvement of the DPS in product development and operational supervision can increase transparency and reduce the potential for fraud. However, the effectiveness of the DPS's role still faces challenges in the form of limited competence, potential conflicts of interest, and weak utilization of surveillance technology. Therefore, strengthening independence, increasing competence, and integrating a digital-based surveillance system are important steps in optimizing the role of the DPS. This study concludes that optimizing the role of the DPS based on sharia maqashid contributes significantly to strengthening governance and preventing fraud in LKS.