Kunhibava, Sherin,(2015), LEGAL ISSUES IN SHARĪʿAH GOVERNANCE IN THE ISLAMIC FINANCE INDUSTRY IN MALAYSIA. , ISRA International Journal of Islamic Finance, UNSPECIFIED
Text
Restricted to Repository staff only
Download (403kB)
Restricted to Repository staff only
Download (403kB)
Abstract
In Malaysia, the Islamic Financial Services Act 2013 (IFSA),
the Central Bank of Malaysia Act 2009 (CBMA) and the Shariah
Governance Framework (SGF) prescribe the structures and processes
required for the Islamic finance industry to ensure compliance with
the Sharīʿah (Islamic law). The Shariah Advisory Council of Bank
Negara Malaysia (SAC)—the apex authority on Sharīʿah matters
relating to banking and takāful—passes rulings and advises Bank
Negara Malaysia (BNM), Islamic financial institutions (IFIs), the
courts and arbitrators on Sharīʿah issues. The Shariah Committee
(SC) of each IFI, on the other hand, functions within the specific IFI to
ensure compliance of its operations with the Sharīʿah. This research
highlights current legal issues within the Islamic finance industry
that should be addressed to optimise the role that each organ plays.
The research highlights that the role of the SAC should be beyond
just ‘ascertainment’ of Islamic law and suggests the amendment
of s.57 of the CBMA. It also proposes to allow ‘other persons’ to
seek the expert advice of the SAC. The enhanced role of monitoring
and rectifying Sharīʿah non-compliance and the distinct burden
and liability of the SC is highlighted in this research. Also, the role
of the Board of Directors (BOD) vis-à-vis the SC and their shared
responsibility in relation to Sharīʿah compliance is explored. Finally,
recommendations are suggested to overcome the legal issues raised
Keywords : | Sharīʿah governance, Shariah Advisory Council, Shariah Committee, Sharīʿah compliance, Board of Directors, Islamic finance industry, UNSPECIFIED |
---|---|
Journal or Publication Title: | ISRA International Journal of Islamic Finance |
Volume: | 7 |
Number: | 2 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 23 Dec 2019 04:47 |
Last Modified: | 23 Dec 2019 04:47 |
URI: | https://repofeb.undip.ac.id/id/eprint/676 |