Efforts to Control and Upgrade The Legal Framework Governing International Financial Transactions (BNM)

Islamic banking and finance do not operate in a vacuum. They exist in an ecosystem comprising various interrelated segments that include: legal and regulatory environment; tax regime; socio-economic norms and culture; political landscape; financial reporting framework and other circumstances. This multi-faceted ecosystem is normally country specific and would inevitably influence the way Islamic banking and finance are being offered or practiced in any individual country.  However, with the advance of globalization, a lot of international and cross-border deals are being transacted. This results in positive and dynamic interactions between the different jurisdictional ecosystem, paving the way towards greater global connectivity.