{"id":30685,"date":"2026-10-23T15:20:19","date_gmt":"2026-10-23T07:20:19","guid":{"rendered":"https:\/\/ifikr.my\/?post_type=insight&#038;p=30685"},"modified":"2026-10-27T16:29:48","modified_gmt":"2026-10-27T08:29:48","slug":"tawarruq","status":"publish","type":"insight","link":"https:\/\/ifikr.my\/ms\/insights\/tawarruq\/","title":{"rendered":"Tawarruq: Institutional Positions, Resolutions and Supporting Literature"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"30685\" class=\"elementor elementor-30685\" data-elementor-post-type=\"insight\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2945a609 e-flex e-con-boxed e-con e-parent\" data-id=\"2945a609\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-28ab0b10 elementor-widget elementor-widget-text-editor\" data-id=\"28ab0b10\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Tawarruq is a <b>two-sale arrangement<\/b> used in Islamic finance to obtain cash through a commodity transaction, and <b>published positions differ over its organised form<\/b>, in which the financier arranges the resale.<\/p><p>This research guide <b>sets out those positions in date order<\/b> and connects them to bank fatwas, Malaysian regulatory documents and supporting literature held on I-FIKR.<\/p><p>The foundational records, including<a href=\"https:\/\/ifikr.my\/ms\/resources\/tawarruq-filepd_reissuancetawarruq_dec2018-pdf\/\"> Bank Negara Malaysia\u2019s 2018 policy document<\/a> and a<a href=\"https:\/\/ifikr.my\/ms\/resources\/survey-on-shari%CA%BFah-non-compliantevents-in-islamic-banks-in-thepractice-of-tawarruq-financing-inmalaysia\/\"> 2020 survey of Shariah non-compliance events in Malaysian tawarruq financing<\/a>, <b>are free to read on I-FIKR<\/b>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a477b74 elementor-widget elementor-widget-heading\" data-id=\"a477b74\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key Takeaways<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ee4639 elementor-widget elementor-widget-text-editor\" data-id=\"7ee4639\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<ul><li><strong>Who this is for<\/strong>: researchers and Shariah reviewers citing primary documents, not readers comparing tawarruq financing products.<\/li><li><strong>IIFA<\/strong>: the International Islamic Fiqh Academy\u2019s Resolution 179 (5\/19), April 2009, permits classical tawarruq and prohibits organised and reverse tawarruq.<\/li><li><strong>AAOIFI<\/strong>: Shari\u2019ah Standard No. 30 (2006) of the Accounting and Auditing Organization for Islamic Financial Institutions permits monetisation under controls on agency.<\/li><li><strong>BNM<\/strong>: BNM\/RH\/PD 028-8 (2018) permits tawarruq, including agency and dual agency under conditions.<\/li><li><strong>Penyelidikan<\/strong>: the studies on I-FIKR examine contract sequencing, agency, the commodity platform and hiyal.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7ff395 elementor-widget elementor-widget-heading\" data-id=\"f7ff395\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is Tawarruq and How Does It Work?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a20cde7 elementor-widget elementor-widget-text-editor\" data-id=\"a20cde7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Under paragraph 9.1 of <a href=\"https:\/\/www.bnm.gov.my\/documents\/20124\/938039\/pd_reissuancetawarruq_dec2018.pdf\/bcc4b359-381c-5035-f9f0-3908faebb92a\" target=\"_blank\" rel=\"noopener\">Bank Negara Malaysia&#8217;s 2018 Tawarruq Policy Document<\/a>, <b>a tawarruq consists of two sale and purchase contracts<\/b>:<\/p><ol><li>A seller sells an asset to a purchaser on a deferred basis.<\/li><li>The purchaser sells the same asset to a third party on a cash and spot basis.<\/li><\/ol><p>Paragraph 11.2 adds that <b>the seller in the first sale may not be the purchaser in the second<\/b>.<\/p><p>The literature distinguishes two forms by who handles that resale:<\/p><ul><li><b>Classical tawarruq:<\/b> the purchaser conducts the resale independently.<\/li><li><b>Organised tawarruq<\/b> (<i>al-tawarruq al-munazzam<\/i>): a financial institution arranges or coordinates the resale.<\/li><\/ul><p>How each body treats the arrangement depends on its own instrument, and <b>the terms are not used consistently across standards<\/b>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a34da1d elementor-widget elementor-widget-image\" data-id=\"a34da1d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow.png\" class=\"attachment-full size-full wp-image-32779\" alt=\"\" srcset=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow.png 1672w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow-300x169.png 300w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow-1024x576.png 1024w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow-768x432.png 768w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow-1536x864.png 1536w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/how-tawarruq-works-transaction-flow-18x10.png 18w\" sizes=\"(max-width: 1672px) 100vw, 1672px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad1ac87 elementor-widget elementor-widget-heading\" data-id=\"ad1ac87\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Where Do the Standard-Setting Bodies Stand on Tawarruq?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bfaeca9 elementor-widget elementor-widget-text-editor\" data-id=\"bfaeca9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>IIFA expressly <b>permits classical tawarruq where sale conditions are met<\/b> dan <b>prohibits the structured and inverse forms<\/b> defined in its 2009 resolution.<\/p><p>AAOIFI and BNM address similar transactions through different standards, with <b>materially different conditions on agency and resale<\/b>.<\/p><p>The table <b>compares what each institution published, not whether any institution is correct<\/b>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb753d2 elementor-widget elementor-widget-image\" data-id=\"bb753d2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1586\" height=\"992\" src=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline.png\" class=\"attachment-full size-full wp-image-32780\" alt=\"\" srcset=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline.png 1586w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline-300x188.png 300w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline-1024x640.png 1024w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline-768x480.png 768w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline-1536x961.png 1536w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-institutional-resolutions-timeline-18x12.png 18w\" sizes=\"(max-width: 1586px) 100vw, 1586px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-aa5f797 elementor-widget elementor-widget-text-editor\" data-id=\"aa5f797\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The distinction between classical, organised and reverse tawarruq is drawn in IIFA Resolution 179 (5\/19), whose English text uses the terms <b>\u201cclassic\u201d, \u201cstructured\u201d and \u201cinverse\u201d<\/b> tawarruq.<\/p><p>In the reverse form, <b>the institution rather than the client is the party seeking cash<\/b>. Bank Negara Malaysia\u2019s policy document does not use these categories.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-917047a elementor-widget elementor-widget-text-editor\" data-id=\"917047a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<div style=\"width: 100%; max-width: 100%; overflow-x: auto; -webkit-overflow-scrolling: touch;\"><table style=\"width: 1100px; min-width: 1100px; table-layout: auto; border-collapse: collapse;\"><thead><tr><th style=\"text-align: left;\" scope=\"col\">Body<\/th><th style=\"text-align: left;\" scope=\"col\">Instrument<\/th><th style=\"text-align: left;\" scope=\"col\">Year<\/th><th style=\"text-align: left; min-width: 170px;\" scope=\"col\">Client resells<br \/>independently<\/th><th style=\"text-align: left;\" scope=\"col\">Resale arranged by institution or its agent<\/th><th style=\"text-align: left;\" scope=\"col\">Where to read it<\/th><\/tr><\/thead><tbody><tr><td><b>Islamic Fiqh Council, Muslim World League (MWL)<\/b><\/td><td>15th and 17th session resolutions, Makkah<\/td><td>1998; 2003<\/td><td>Permitted (1998)<\/td><td>Organised tawarruq as practised by banks declared impermissible (2003)<\/td><td>Dates cited in <a href=\"https:\/\/ifikr.my\/ms\/resources\/survey-on-shari%CA%BFah-non-compliantevents-in-islamic-banks-in-thepractice-of-tawarruq-financing-inmalaysia\/\">Ali and Hassan (2020)<\/a>, free<\/td><\/tr><tr><td><b>AAOIFI<\/b><\/td><td><a href=\"https:\/\/ifikr.my\/ms\/resources\/aaoifi-shariah-standard-no-30-monetization-tawarruq-filess-30-monetization-tawarruq-pdf\/\">Shari&#8217;ah Standard No. 30, Monetization (Tawarruq)<\/a><\/td><td>2006<\/td><td>Permitted subject to the standard&#8217;s conditions<\/td><td>Client may not appoint the institution or its agent to resell, except where regulations permit no other route and only after receipt (4\/7); institution may not arrange a third-party proxy to sell for the client (4\/8)<\/td><td>I-FIKR (free); <a href=\"https:\/\/aaoifi.com\/e-standards\/?lang=en\" target=\"_blank\" rel=\"noopener\">AAOIFI e-standards<\/a> (online access)<\/td><\/tr><tr><td><b>Dubai Islamic Bank<\/b><\/td><td>Fatwa: <a href=\"https:\/\/ifikr.my\/ms\/resources\/02115175434b892d4811abcee71da92b-prohibition-of-al-tawarruq-al-munazzam-in-2007\/\">Prohibition of Al-Tawarruq Al-Munazzam in 2007<\/a><\/td><td>2007 appears in title<\/td><td>Not established by the title<\/td><td>Record title refers to prohibition; scope needs full-text review<\/td><td>I-FIKR (Premium)<\/td><\/tr><tr><td><b>International Islamic Fiqh Academy<\/b><\/td><td><a href=\"https:\/\/ifikr.my\/ms\/resources\/793f5c21e651cb2ada0b7a58e0835192-resolution-no-179-5-19-tawarruq-its-meaning-and-types-organised-tawarruq-impermissible-in-2009\/\">Resolution 179 (5\/19)<\/a>, 19th session, Sharjah, 26 to 30 April 2009<\/td><td>2009<\/td><td>Permitted where the conditions of sale are met<\/td><td>Organised and reverse tawarruq prohibited<\/td><td>I-FIKR (Premium); <a href=\"https:\/\/iifa-aifi.org\/en\/32987.html\" target=\"_blank\" rel=\"noopener\">the Academy&#8217;s published text<\/a><\/td><\/tr><tr><td><b>Bank Negara Malaysia<\/b><\/td><td>Tawarruq policy document, <a href=\"https:\/\/www.bnm.gov.my\/documents\/20124\/938039\/pd_reissuancetawarruq_dec2018.pdf\/bcc4b359-381c-5035-f9f0-3908faebb92a\" target=\"_blank\" rel=\"noopener\">BNM\/RH\/PD 028-8<\/a><\/td><td>2018<\/td><td>Permitted (two-sale definition, paragraph 9.1)<\/td><td>Agency and dual agency permitted under conditions<\/td><td>I-FIKR (free); BNM<\/td><\/tr><\/tbody><\/table><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-639a42d elementor-widget elementor-widget-text-editor\" data-id=\"639a42d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>AAOIFI Shari&#8217;ah Standard No. 30 addresses monetisation <b>without adopting IIFA&#8217;s classical, organised and reverse categories<\/b>. Two clauses govern who may conduct the resale:<\/p><ul><li><b>Clause 4\/7:<\/b> the client may not authorise the selling institution or its agent to conduct the resale. A narrow exception applies where regulations leave no other route and the client has first received the commodity.<\/li><li><b>Clause 4\/8:<\/b> the institution may not arrange a third party to resell the commodity for the client.<\/li><\/ul><p>Researchers can consult the <a href=\"https:\/\/ifikr.my\/ms\/resources\/aaoifi-shariah-standard-no-30-monetization-tawarruq-filess-30-monetization-tawarruq-pdf\/\">I-FIKR standard record<\/a> dan <a href=\"https:\/\/aaoifi.com\/e-standards\/?lang=en\" target=\"_blank\" rel=\"noopener\">AAOIFI&#8217;s official standards portal<\/a>.<\/p><p>Three points matter when citing the table:<\/p><ul><li><b>Dubai Islamic Bank (2007):<\/b> I-FIKR catalogues the fatwa <i>Prohibition of Al-Tawarruq Al-Munazzam in 2007<\/i> (Premium). <b>Its title should not be used to infer the full scope or conditions<\/b> of the bank&#8217;s position without the underlying text.<\/li><li><b>IIFA and the MWL:<\/b> the IIFA Council reviewed the MWL resolutions before adopting Resolution 179 (5\/19) in 2009.<\/li><li><b>Malaysia and IIFA:<\/b> the Malaysian policy takes a different approach from IIFA&#8217;s 2009 classification, which matters when a researcher compares rulings from separate jurisdictions or studies an individual bank&#8217;s Shariah approval.<\/li><\/ul><p>The issuing bodies publish their own instruments. I-FIKR allows researchers to move between those instruments, bank fatwa records and related academic literature <b>without treating any repository summary as a substitute for the original ruling<\/b>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e4972c elementor-cta--skin-cover elementor-animated-content elementor-bg-transform elementor-bg-transform-zoom-in elementor-widget elementor-widget-call-to-action\" data-id=\"4e4972c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"call-to-action.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-cta\">\n\t\t\t\t\t<div class=\"elementor-cta__bg-wrapper\">\n\t\t\t\t<div class=\"elementor-cta__bg elementor-bg\" style=\"background-image: url(https:\/\/ifikr.my\/wp-content\/uploads\/2026\/01\/Frame-270988247-1.png);\" role=\"img\" aria-label=\"banner-explore\"><\/div>\n\t\t\t\t<div class=\"elementor-cta__bg-overlay\"><\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-cta__content\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__title elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t\tRead the Full Tawarruq Records\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__description elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t\tStart your 3-day free trial today.\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__button-wrapper elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t<a class=\"elementor-cta__button elementor-button elementor-size-\" href=\"https:\/\/ifikr.my\/ms\/register\/\">\n\t\t\t\t\t\tStart free trial\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fa61402 elementor-widget elementor-widget-heading\" data-id=\"fa61402\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Have Bank Shariah Boards Applied Tawarruq in Their Fatwas?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c34fdf7 elementor-widget elementor-widget-text-editor\" data-id=\"c34fdf7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>I-FIKR catalogues tawarruq-related fatwa records attributed to Shariah boards at institutions including Kuwait Finance House (KFH), Arab Banking Corporation and Dubai Islamic Bank.<\/p><p><b>Most address a single operational question<\/b>: which commodity may be used, who may resell it, which counterparties are acceptable, and what the cash may be used for.<\/p><p>The table <b>compares what each institution published, not whether any institution is correct<\/b>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a2b794f elementor-widget elementor-widget-image\" data-id=\"a2b794f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources.png\" class=\"attachment-full size-full wp-image-32781\" alt=\"\" srcset=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources.png 1672w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources-300x169.png 300w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources-1024x576.png 1024w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources-768x432.png 768w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources-1536x864.png 1536w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/ifikr-islamic-finance-library-resources-18x10.png 18w\" sizes=\"(max-width: 1672px) 100vw, 1672px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-52aba87 elementor-widget elementor-widget-text-editor\" data-id=\"52aba87\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<div style=\"width: 100%; max-width: 100%; overflow-x: auto; -webkit-overflow-scrolling: touch;\">\n<table style=\"width: 1100px; min-width: 1100px; table-layout: auto; border-collapse: collapse;\">\n<tbody>\n<tr>\n<td><b>Question addressed<\/b><\/td>\n<td><b>Record<\/b><\/td>\n<td><b>Issuer<\/b><\/td>\n<td><b>Access<\/b><\/td>\n<\/tr>\n<tr>\n<td>Choice of commodity<\/td>\n<td><a href=\"https:\/\/ifikr.my\/ms\/resources\/ea3615143aa32c1619222ba507fc3c76-tawarruq-using-cement-as-the-commodity\/\">Tawarruq Using Cement as the Commodity<\/a><\/td>\n<td>Kuwait Finance House<\/td>\n<td>Premium<\/td>\n<\/tr>\n<tr>\n<td>The resale<\/td>\n<td><a href=\"https:\/\/ifikr.my\/ms\/resources\/52b5a7f6b782e112778caf5678a35f08-tawarruq-when-the-bank-does-not-involve-itself-in-the-customers-resale-of-the-good\/\">Tawarruq When the Bank Does Not Involve Itself in the Customer&#8217;s Resale of the Good<\/a><\/td>\n<td>Kuwait Finance House<\/td>\n<td>Premium<\/td>\n<\/tr>\n<tr>\n<td>Counterparty<\/td>\n<td><a href=\"https:\/\/ifikr.my\/ms\/resources\/5015620a8fb8424f5843f1f40ebe829f-tawarruq-with-a-conventional-bank\/\">Tawarruq With a Conventional Bank<\/a><\/td>\n<td>Arab Banking Corporation<\/td>\n<td>Premium<\/td>\n<\/tr>\n<tr>\n<td>Counterparty<\/td>\n<td><a href=\"https:\/\/ifikr.my\/ms\/resources\/e057133a4c184a3cea95f3771f3590b8-commodity-murabahah-tawarruq-frameworks-to-be-used-with-selected-international-banks-and-financial-institutions\/\">Commodity Murabahah (Tawarruq) Frameworks to Be Used with Selected International Banks and Financial Institutions<\/a><\/td>\n<td>Kuwait Finance House<\/td>\n<td>Premium<\/td>\n<\/tr>\n<tr>\n<td>Purpose of the cash<\/td>\n<td><a href=\"https:\/\/ifikr.my\/ms\/resources\/cd1c1b980db4d1a0f9275382848c6498-is-it-permissible-to-conduct-tawarruq-procedure-for-a-company-that-intends-to-settle-a-previous-interest-based-debt\/\">Is it permissible to conduct Tawarruq procedure for a company that intends to settle a previous interest-based debt?<\/a><\/td>\n<td>Kuwait Finance House<\/td>\n<td>Premium<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-601d7a1 elementor-widget elementor-widget-text-editor\" data-id=\"601d7a1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Notes on reading these records:<\/p><ul><li><b>The resale (KFH):<\/b> the record concerns the bank\u2019s non-involvement in the client\u2019s second sale, <b>the step on which the instruments in the table above differ<\/b>.<\/li><li><b>Counterparties:<\/b> the KFH frameworks record concerns arrangements with international counterparties, while the Arab Banking Corporation record addresses tawarruq with a conventional bank.<\/li><li><b>AAOIFI clause 3\/2:<\/b> separately restricts monetisation involving conventional banks when the funds would be used for interest-based lending; <b>this does not establish the outcome of the Arab Banking Corporation fatwa<\/b>.<\/li><\/ul><p>A fatwa&#8217;s catalogue title identifies the question examined, but does not necessarily disclose the full reasoning, conditions or scope of the Shariah board&#8217;s ruling. <b>Researchers should read each Premium record before citing a bank&#8217;s substantive position.<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0efaca0 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"0efaca0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8145850 elementor-widget elementor-widget-text-editor\" data-id=\"8145850\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Need the regulator\u2019s own text rather than a bank\u2019s application of it? I-FIKR\u2019s <a href=\"https:\/\/ifikr.my\/ms\/resources\/category\/standard-and-guideline\/\">Regulation &amp; Resolution collection<\/a> holds BNM policy documents, AAOIFI Shari\u2019ah Standards and compiled Shariah Advisory Council resolutions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-50374eb elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"50374eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-80b50df elementor-widget elementor-widget-heading\" data-id=\"80b50df\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Governs Tawarruq in Malaysian Islamic Banking?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-05e28de elementor-widget elementor-widget-text-editor\" data-id=\"05e28de\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For Malaysian Islamic financial institutions, <b>the governing instrument is<\/b> <a href=\"https:\/\/www.bnm.gov.my\/documents\/20124\/938039\/pd_reissuancetawarruq_dec2018.pdf\/bcc4b359-381c-5035-f9f0-3908faebb92a\" target=\"_blank\" rel=\"noopener\"><b>BNM\/RH\/PD 028-8<\/b><\/a>. The provisions most relevant to researchers:<\/p><ul><li><b>Status:<\/b> issued and effective on 28 December 2018; sets Shariah requirements and operational expectations for Malaysian Islamic financial institutions.<\/li><li><b>Contract form (paragraph 10.3):<\/b> the sale and purchase contract within a tawarruq may take the form of murabahah or musawamah.<\/li><li><b>Agency (paragraphs 16 and 17):<\/b> <i>wakalah<\/i> (agency) and dual agency may be used, subject to the document&#8217;s transaction-sequencing and other conditions.<\/li><\/ul><p><b>Commodity murabahah<\/b> is the market name commonly used for <b>tawarruq<\/b> in Malaysia, though the terms are not identical.<\/p><p>The <a href=\"https:\/\/my.bursamalaysia.com\/learn\/knowledge\/explorer\/tawarruq-modus-operandi-and-legality\" target=\"_blank\" rel=\"noopener\">Bursa Suq Al-Sila&#8217; commodity platform<\/a> is a further focus of Malaysian scholarship. Research examines whether documented commodity ownership, possession, resale and agency arrangements address the concerns raised about organised tawarruq in Islamic banking.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b1de42d elementor-widget elementor-widget-heading\" data-id=\"b1de42d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Does the Research on Tawarruq Practice Examine?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a49055e elementor-widget elementor-widget-text-editor\" data-id=\"a49055e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>I-FIKR&#8217;s research records examine the legal arguments surrounding IIFA&#8217;s 2009 decision, the operation of commodity platforms and the application of tawarruq in Islamic banking products.<\/p><p>These papers also distinguish a transaction&#8217;s formal contractual design from the way its sales and agency steps are executed.<\/p><ul><li><b>The 2009 ruling.<\/b> Rafe Haneef (2009), <a href=\"https:\/\/ifikr.my\/ms\/resources\/irp-2-is-the-ban-on-organised-tawarruq-the-tip-of-the-iceberg-fileirp-2-is-the-ban-on-organised-tawarruq-the-tip-of-the-iceberg\/\">IRP 2: Is the Ban on &#8220;Organised Tawarruq&#8221; the Tip of the Iceberg?<\/a>, Premium. Haneef examines the arguments of the opponents and proponents of tawarruq <b>to assess the IIFA ruling<\/b>, and places it within wider critiques of contemporary Islamic finance contracts.<\/li><li><b>The commodity platform.<\/b> Asyraf Wajdi Dusuki (2010), <a href=\"https:\/\/ifikr.my\/ms\/resources\/irp-10-can-bursa-malaysias-suq-al-sila-commodity-murabahah-house-resolve-the-controversy-over-tawarruq-fileirp-10-can-bursa-malaysias-suq-al-sila-commodity\/\">IRP 10: Can Bursa Malaysia&#8217;s Suq al-Sila&#8217; (Commodity Murabahah House) Resolve the Controversy over Tawarruq?<\/a>, Premium. Dusuki judges the platform Bursa Malaysia launched in 2009 <b>a commendable initiative while identifying unresolved Shariah matters<\/b>, and argues that its use should be weighed against genuine need. Bursa Malaysia describes the platform&#8217;s role in tawarruq transactions in <a href=\"https:\/\/my.bursamalaysia.com\/learn\/knowledge\/explorer\/tawarruq-modus-operandi-and-legality\" target=\"_blank\" rel=\"noopener\">its own explainer<\/a>.<\/li><li>Dusuki, Muhammad Mahbubi Ali and Yulizar D. Sandrego (2013), <a href=\"https:\/\/ifikr.my\/ms\/resources\/irp-49-the-application-of-commodity-murabahah-in-bursa-suq-al-sila-malaysia-vis-a-vis-jakarta-future-exchange-shariah-indonesia-a-comparative-analysis-fileirp-49-the-application-of-comm\/\">IRP 49: The Application of Commodity Murabahah in Bursa Suq Al-Sila&#8217; Malaysia vis-a-vis Jakarta Future Exchange Shariah Indonesia<\/a>, Premium. IRP 49 <b>identifies four Shariah issues in organised tawarruq<\/b>: the commodity, possession and delivery, prearrangement, and agency.<\/li><li><b>Practice in Malaysian banks.<\/b> Mohammad Mahbubi Ali and Rusni Hassan (2020), <a href=\"https:\/\/ifikr.my\/ms\/resources\/survey-on-shari%CA%BFah-non-compliantevents-in-islamic-banks-in-thepractice-of-tawarruq-financing-inmalaysia\/\">Survey on Shar\u012b\u02bfah non-compliant events in Islamic banks in the practice of tawarruq financing in Malaysia<\/a>, ISRA International Journal of Islamic Finance 12(2), <a href=\"https:\/\/doi.org\/10.1108\/IJIF-07-2018-0075\" target=\"_blank\" rel=\"noopener\">DOI<\/a>, free. Surveying 16 Malaysian Islamic commercial banks, Ali and Hassan found that some tawarruq practices <b>might not comply with Shariah, mainly through improper sequencing of contracts<\/b>. Boards of directors or management influenced certain Shariah decisions, particularly on the treatment of non-halal income.<\/li><li>Muhammad Izzul Syahmi, Mohammad Taqiuddin Mohamad and Mohd Anuar Ramli (2022), <a href=\"https:\/\/ifikr.my\/ms\/resources\/experts-views-on-hiyal-inmalaysian-islamic-banksthe-case-of-tawarruq-baseddeposit-products\/\">Experts&#8217; views on hiyal in Malaysian Islamic banks: the case of tawarruq-based deposit products<\/a>, ISRA IJIF 14(3), free. Drawing on expert interviews, the authors report that Malaysian Islamic banks adopted tawarruq munazzam for deposit products because of banking-system constraints and customer preferences, and <b>call for new contracts to be developed<\/b>.<\/li><\/ul><p>Researchers who need the complete Premium fatwas and research papers can explore the collection through <a href=\"https:\/\/ifikr.my\/ms\/register\/\">I-FIKR&#8217;s three-day free trial<\/a>; the platform states that new users do not need a payment card to activate it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7f7a61d elementor-widget elementor-widget-heading\" data-id=\"7f7a61d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Alternatives to Tawarruq and Transition Paths Have Been Discussed?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6527de7 elementor-widget elementor-widget-text-editor\" data-id=\"6527de7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Two instruments name alternatives:<\/p><ul><li><b>IIFA Resolution 179 (5\/19)<\/b> recommends that Islamic financial institutions consider establishing special qard hasan funds, so that those who need cash are not forced into prohibited tawarruq.<\/li><li><b>AAOIFI Shari&#8217;ah Standard No. 30, clause 5\/1,<\/b> states that <b>monetisation is not a mode of investment or financing<\/b>. It points institutions to modes such as mudarabah, investment agency, sukuk and investment funds, and allows monetisation for their own liquidity only when a shortage threatens to interrupt operations. The <a href=\"https:\/\/ifikr.my\/ms\/resources\/aaoifi-shariah-standard-no-30-monetization-tawarruq-filess-30-monetization-tawarruq-pdf\/\">full standard<\/a> is free on I-FIKR.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a369021 elementor-widget elementor-widget-image\" data-id=\"a369021\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1672\" height=\"941\" src=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance.png\" class=\"attachment-full size-full wp-image-32782\" alt=\"\" srcset=\"https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance.png 1672w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance-300x169.png 300w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance-1024x576.png 1024w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance-768x432.png 768w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance-1536x864.png 1536w, https:\/\/ifikr.my\/wp-content\/uploads\/2026\/10\/tawarruq-alternatives-islamic-finance-18x10.png 18w\" sizes=\"(max-width: 1672px) 100vw, 1672px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f85db14 elementor-widget elementor-widget-text-editor\" data-id=\"f85db14\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tI-FIKR also catalogues the 2024 Muzakarah Cendekiawan Syariah Nusantara masterclass on <a href=\"https:\/\/ifikr.my\/ms\/resources\/tawarruq-alternative-solutions-and-transition-process-introduction\/\">Tawarruq: Alternative Solutions and Transition Process<\/a>. Its collection identifies <b>four Premium recordings<\/b>: an introduction and Sessions 1, 2 and 3.\n\nThese materials provide a further research path for questions about alternatives and transition, although the full recordings should be consulted before attributing particular proposals to a speaker.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d162064 elementor-widget elementor-widget-heading\" data-id=\"d162064\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Use I-FIKR for Islamic Finance Research?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-247393d elementor-widget elementor-widget-text-editor\" data-id=\"247393d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>I-FIKR brings authoritative Shariah and Islamic finance references together in one platform.<\/p><ul><li><b>Institutionally curated:<\/b> Content is curated by ISRA Institute and INCEIF University, not crowdsourced.<\/li><li><b>Regulatory sources in one place:<\/b> Documents from Bank Negara Malaysia (BNM), the Securities Commission Malaysia (SC) and AAOIFI sit alongside fatwas, journals and industry reports.<\/li><li><b>Arabic made accessible:<\/b> Selected Arabic materials are translated into English.<\/li><li><b>Start free:<\/b> Registration costs nothing, and new accounts get a three-day <a href=\"https:\/\/ifikr.my\/ms\/register\/\">Premium trial<\/a> with no payment card.<\/li><li><b>Access for teams:<\/b> The <a href=\"https:\/\/ifikr.my\/ms\/corporate-plan-contact-form\/\">Pelan Korporat<\/a> offers institutional accounts, onboarding and usage reports on request.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a39e783 elementor-cta--skin-cover elementor-animated-content elementor-bg-transform elementor-bg-transform-zoom-in elementor-widget elementor-widget-call-to-action\" data-id=\"a39e783\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"call-to-action.default\">\n\t\t\t\t\t\t\t<div class=\"elementor-cta\">\n\t\t\t\t\t<div class=\"elementor-cta__bg-wrapper\">\n\t\t\t\t<div class=\"elementor-cta__bg elementor-bg\" style=\"background-image: url(https:\/\/ifikr.my\/wp-content\/uploads\/2026\/01\/top-banner-slider-1024x585.jpg);\" role=\"img\" aria-label=\"top-banner-slider\"><\/div>\n\t\t\t\t<div class=\"elementor-cta__bg-overlay\"><\/div>\n\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-cta__content\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__title elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t\tRead the Full Tawarruq Records\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__description elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t\tStart your 3-day free trial today.\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-cta__button-wrapper elementor-cta__content-item elementor-content-item elementor-animated-item--grow\">\n\t\t\t\t\t<a class=\"elementor-cta__button elementor-button elementor-size-\" href=\"https:\/\/ifikr.my\/ms\/register\/\">\n\t\t\t\t\t\tStart free trial\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2efd66c elementor-widget elementor-widget-heading\" data-id=\"2efd66c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b3108fd elementor-widget elementor-widget-n-accordion\" data-id=\"b3108fd\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;,&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:400,&quot;sizes&quot;:[]}}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1870\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1870\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> How does tawarruq differ from bay al-inah? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1870\" class=\"elementor-element elementor-element-8860b51 e-con-full e-flex e-con e-child\" data-id=\"8860b51\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1870\" class=\"elementor-element elementor-element-3c2b543 e-flex e-con-boxed e-con e-child\" data-id=\"3c2b543\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-a2def93 elementor-widget elementor-widget-text-editor\" data-id=\"a2def93\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Clause 4\/5 of AAOIFI Shari&#8217;ah Standard No. 30 requires the cash sale in monetisation<strong> to go to someone other than the original seller.<\/strong> Bay al-inah sells the commodity back to the party it was bought from.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1871\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1871\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Is commodity murabahah the same as tawarruq? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1871\" class=\"elementor-element elementor-element-e051ac6 e-con-full e-flex e-con e-child\" data-id=\"e051ac6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1871\" class=\"elementor-element elementor-element-1621501 e-flex e-con-boxed e-con e-child\" data-id=\"1621501\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ec18907 elementor-widget elementor-widget-text-editor\" data-id=\"ec18907\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<b>Not exactly.<\/b>In Malaysian banking, commodity murabahah is often used as a label for tawarruq-based transactions, while BNM notes in paragraph 10.3 of its 2018 policy that the sale contract within a tawarruq <\/span>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1872\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1872\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> What did IIFA Resolution 179 decide? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1872\" class=\"elementor-element elementor-element-804089a e-con-full e-flex e-con e-child\" data-id=\"804089a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1872\" class=\"elementor-element elementor-element-cc57f1c e-flex e-con-boxed e-con e-child\" data-id=\"cc57f1c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-f4a67eb elementor-widget elementor-widget-text-editor\" data-id=\"f4a67eb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>IIFA Resolution 179 (5\/19), adopted in Sharjah in April 2009, <strong>permits classical tawarruq that meets the conditions of sale, prohibits organised and reverse tawarruq,<\/strong> and recommends qard hasan funds.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1873\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1873\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Did AAOIFI prohibit organised tawarruq? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1873\" class=\"elementor-element elementor-element-d5d875c e-con-full e-flex e-con e-child\" data-id=\"d5d875c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1873\" class=\"elementor-element elementor-element-d518373 e-flex e-con-boxed e-con e-child\" data-id=\"d518373\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e4743f8 elementor-widget elementor-widget-text-editor\" data-id=\"e4743f8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<b>Not in those terms.<\/b> AAOIFI Shari&#8217;ah Standard No. 30 (2006) does not use IIFA&#8217;s classification; it permits monetisation under controls, including clauses 4\/7 and 4\/8 on who may sell for the client. <b>The 2009 prohibition of organised tawarruq is IIFA&#8217;s.<\/b>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1874\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1874\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Which BNM document governs tawarruq in Malaysia? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1874\" class=\"elementor-element elementor-element-eff3615 e-con-full e-flex e-con e-child\" data-id=\"eff3615\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1874\" class=\"elementor-element elementor-element-6f66d80 e-flex e-con-boxed e-con e-child\" data-id=\"6f66d80\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b13b202 elementor-widget elementor-widget-text-editor\" data-id=\"b13b202\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<b>BNM\/RH\/PD 028-8<\/b>, issued and effective on 28 December 2018, sets the Shariah and operational requirements for applicable Malaysian Islamic financial institutions. Paragraph 7.1 explicitly supersedes the Tawarruq policy issued on 17 November 2015.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1875\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"6\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1875\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> What is Bursa Suq Al-Sila'? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1875\" class=\"elementor-element elementor-element-2db243d e-con-full e-flex e-con e-child\" data-id=\"2db243d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1875\" class=\"elementor-element elementor-element-a4264cd e-flex e-con-boxed e-con e-child\" data-id=\"a4264cd\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-53503f6 elementor-widget elementor-widget-text-editor\" data-id=\"53503f6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tBursa Suq Al-Sila&#8217; is <b>Bursa Malaysia&#8217;s Shariah-compliant commodity trading platform<\/b>, launched in 2009 and formerly called the Commodity Murabahah House. It facilitates commodity murabahah and tawarruq transactions; crude palm oil was its launch commodity.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1876\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"7\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1876\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Where can I read the primary documents on tawarruq? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-up\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M240.971 130.524l194.343 194.343c9.373 9.373 9.373 24.569 0 33.941l-22.667 22.667c-9.357 9.357-24.522 9.375-33.901.04L224 227.495 69.255 381.516c-9.379 9.335-24.544 9.317-33.901-.04l-22.667-22.667c-9.373-9.373-9.373-24.569 0-33.941L207.03 130.525c9.372-9.373 24.568-9.373 33.941-.001z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-chevron-down\" viewbox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M207.029 381.476L12.686 187.132c-9.373-9.373-9.373-24.569 0-33.941l22.667-22.667c9.357-9.357 24.522-9.375 33.901-.04L224 284.505l154.745-154.021c9.379-9.335 24.544-9.317 33.901.04l22.667 22.667c9.373 9.373 9.373 24.569 0 33.941L240.971 381.476c-9.373 9.372-24.569 9.372-33.942 0z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1876\" class=\"elementor-element elementor-element-0038c38 e-con-full e-flex e-con e-child\" data-id=\"0038c38\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1876\" class=\"elementor-element elementor-element-05dc8cb e-flex e-con-boxed e-con e-child\" data-id=\"05dc8cb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4a5ccc2 elementor-widget elementor-widget-text-editor\" data-id=\"4a5ccc2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>I-FIKR lists the BNM 2018 policy and AAOIFI Shari&#8217;ah Standard No. 30 <b>as free resources<\/b>, while its IIFA Resolution 179 record is labelled Premium. The <a href=\"https:\/\/iifa-aifi.org\/en\/32987.html\" target=\"_blank\" rel=\"noopener\">IIFA resolution<\/a> is also publicly available from the issuing Academy, and <a href=\"https:\/\/aaoifi.com\/e-standards\/?lang=en\" target=\"_blank\" rel=\"noopener\">AAOIFI provides online access to its standards<\/a> through its official portal.<\/p><p>I-FIKR hosts these materials, with English translations of selected Arabic records, and <b>does not issue Shariah rulings<\/b>. Readers should consult the issuing body&#8217;s own publication for the authoritative text.<\/p><p>Shariah review and compliance teams that need shared access can arrange institutional accounts, with onboarding and usage reports on request, through the <a href=\"https:\/\/ifikr.my\/ms\/corporate-plan-contact-form\/\">I-FIKR Corporate Plan<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>","protected":false},"featured_media":32778,"template":"","meta":{"_acf_changed":false},"insights-category":[248],"class_list":["post-30685","insight","type-insight","status-publish","has-post-thumbnail","hentry","insights-category-research-guide"],"acf":[],"_links":{"self":[{"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/insight\/30685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":48,"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/insight\/30685\/revisions"}],"predecessor-version":[{"id":32831,"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/insight\/30685\/revisions\/32831"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/media\/32778"}],"wp:attachment":[{"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/media?parent=30685"}],"wp:term":[{"taxonomy":"insights-category","embeddable":true,"href":"https:\/\/ifikr.my\/ms\/wp-json\/wp\/v2\/insights-category?post=30685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}