Islamic Finance
ACKNOWLEDGEMENT
The success and final outcome of this project require a lot of guidance and assistance from many people and we are extremely fortunate to have got this all along the completion of our assignment. Whatever we have done is due to the guidance and assistance that we receive and we should not forget to thank them.
We would like to express our deepest appreciation to Mr Zainal Azhar Bin Zainal Azim who is our lecturer for Islamic Finance on giving us the opportunity to work on the assignment and providing us with lots of support and guidance which has helped us to complete the assignment on time. This assignment has brought us in making lots of research and we came across to acquire new things about Islamic Finance and Islamic banking specifically.
Nevertheless, we would also like to thank our fellow classmates who have been providing ideas, contributing their time and also the cooperation to complete our assignment on time. Without them, this project would might not come into its present form.
INTRODUCTION
The compliance with Shariah principles is an integral feature in the Islamic banking and finance. An effective and conducive Shariah framework is imperative in assuring such compliance. It will underpin a comprehensive and wholesome development of this sector. An effective Shariah framework will harmonize the Shariah interpretations, strengthen the regulatory and supervisory oversight of the industry and will also foster and nurture a pool of competent Shariah advisers.
To achieve the above objectives, Bank Negara Malaysia has amended the Central Bank of Malaysia Act 1958 to enhance the role and functions of its Shariah Advisory Council for Islamic Banking and Takaful (SAC). This amendment has accorded the SAC as the sole Shariah authority in Islamic finance. As the sole Shariah authority, the SAC will be referred to by the court or arbitrator in disputes involving Shariah issues in Islamic banking, finance and takaful cases.
The success and final outcome of this project require a lot of guidance and assistance from many people and we are extremely fortunate to have got this all along the completion of our assignment. Whatever we have done is due to the guidance and assistance that we receive and we should not forget to thank them.
We would like to express our deepest appreciation to Mr Zainal Azhar Bin Zainal Azim who is our lecturer for Islamic Finance on giving us the opportunity to work on the assignment and providing us with lots of support and guidance which has helped us to complete the assignment on time. This assignment has brought us in making lots of research and we came across to acquire new things about Islamic Finance and Islamic banking specifically.
Nevertheless, we would also like to thank our fellow classmates who have been providing ideas, contributing their time and also the cooperation to complete our assignment on time. Without them, this project would might not come into its present form.
INTRODUCTION
The compliance with Shariah principles is an integral feature in the Islamic banking and finance. An effective and conducive Shariah framework is imperative in assuring such compliance. It will underpin a comprehensive and wholesome development of this sector. An effective Shariah framework will harmonize the Shariah interpretations, strengthen the regulatory and supervisory oversight of the industry and will also foster and nurture a pool of competent Shariah advisers.
To achieve the above objectives, Bank Negara Malaysia has amended the Central Bank of Malaysia Act 1958 to enhance the role and functions of its Shariah Advisory Council for Islamic Banking and Takaful (SAC). This amendment has accorded the SAC as the sole Shariah authority in Islamic finance. As the sole Shariah authority, the SAC will be referred to by the court or arbitrator in disputes involving Shariah issues in Islamic banking, finance and takaful cases.
References: Laws of Malaysia, Act 276, Islamic Banking Act 1983 Laws of Malaysia, Act 372, Banking and Financial Institutions Act 1989 Laws of Malaysia, Act 759, Islamic Financial Services Act 2013 Islamic Finance and Banking System, Philosophies, Principles & Practices by Sudin Haron, Wan Nursofiza Wan Azmi http://ifp.law.harvard.edu/login/view_pdf/?file=The%20Islamic%20Banking%20System%20in%20Malaysia.pdf&type=Project_Publication www.bnm.gov.my