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Tue, May 26 11:13 PM
Non-Compliant

LICN

Quality Rating

BBB
Satisfactory compliance quality

Lichen International Limited (LICN), a provider of financial and taxation solutions, educational support, and software services, is classified as non-compliant with Shariah standards primarily due to a high non-compliant income ratio of 30.1% from interest-bearing activities, exceeding the 5% threshold across major screening methodologies. While debt (0.41%) and liquidity (25.75%) ratios are favorable, the core financial services business raises concerns over riba involvement. The company is excluded from all major Shariah indices, confirming non-compliance. Purification of 30.1% is required for any impure income, and investors should monitor for shifts toward Islamic-compliant models. Overall, LICN presents moderate financial strength but significant Shariah risks in its revenue streams.

Purification Required
30.1%
significant

Significant purification required - exercise caution

Index Inclusion

Excluded from S&P Dow Jones Shariah Indices, MSCI Islamic Indices, FTSE Shariah Indices, and Dow Jones Islamic Market (DJIM)

Key Compliance Considerations

Debt Ratio

0.0%

Liquidity Ratio

25.8%

Interest Income Ratio

30.1%

Purification

30.10%