The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 146th Meeting

The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 146th meeting on 29 April 2014. The meeting among others, discussed issues arising from Shariah Standard on Tawarruq, endorsed Shariah Standard on Musharakah and revised specific provisions of Shariah Standard on Mudarabah.

The SAC discussed the Shariah Standard on Tawarruq and viewed that the arrangement of “dual agency” in tawarruq must be supported by proper evidence of murabahah transaction between the principal and the agent. The SAC also viewed that hiwalah al-dayn (transfer of debt to third party) releases the buyer’s obligation to settle the debt arising from murabahah under the tawarruq arrangement.

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