Shariah Resolutions in Islamic FinanceSecond Edition

The compliance with Shariah principles is an integral feature in Islamic banking and finance. The Shariah deliberation and interpretation process is imperative in ensuring such compliance. Harmonisation of Shariah interpretations will underpin a comprehensive and wholesome development of this sector. It will strengthen the regulatory and supervisory oversight of the industry and also foster and nurture a pool of competent Shariah advisers.

Among initiatives to achieve the above objectives, Bank Negara Malaysia has amended the Central Bank of Malaysia Act 1958 to enhance the role and functions of its Shariah Advisory Council of Bank Negara Malaysia (SAC). This amendment has accorded the SAC the status of the sole Shariah authority in Islamic finance. To serve this purpose, the SAC may be referred to by the court or arbitrator in disputes involving Shariah issues in Islamic banking, finance, and takaful cases.

In light of the above, Bank Negara Malaysia has prepared the Resolutions of Shariah Advisory Council of Bank Negara Malaysia that disseminate relevant Shariah resolutions issued by the SAC.

The guide aims at achieving the following:
(i) to disseminate Shariah resolutions issued by the SAC;
(ii) to facilitate Islamic financial institutions in developing financial products by providing reference in Shariah matters; and
(iii) to promote harmonisation of Shariah interpretation in the Islamic finance industry.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking