The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 154th Meeting

The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 154th meeting on 17 December 2014. The meeting discussed issues mainly relating to the draft Shariah Standard on Wakalah. Among the key decisions reached by the SAC on Wakalah relates to the situation where the wakil under wakalah bil ujrah (fee based agency) shall be entitled to a fee in undertaking the task mandated by the muwakkil. With regard to the arrangement of wakalah with kafalah, the SAC decided that both contracts may be combined in one agreement provided that:

(i)   the validity of one contract is not contingent upon the other; and
(ii)  such combination shall not result in guaranteeing the investment capital by the wakil.

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