The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues

The Malaysian Shariah Advisory Council ('SAC'), established under the Central Bank of Malaysia Act 2009 (Act 701), acts as an authority for the ascertainment of Islamic law in the operation of Islamic Financial Institutions ('IFIs').Its decision is binding on all IFIs, the Bank N...

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Main Authors: Md Dahlan, Nuarrual Hilal, Abdul Jalil, Ahmad Zafarullah, Zainol, Zairani, Maamor, Selamah
Format: Article
Language:English
Published: Inderscience Publishers 2016
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/18215/7/JGBA%209%283%29_284_298.pdf
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author Md Dahlan, Nuarrual Hilal
Abdul Jalil, Ahmad Zafarullah
Zainol, Zairani
Maamor, Selamah
author_facet Md Dahlan, Nuarrual Hilal
Abdul Jalil, Ahmad Zafarullah
Zainol, Zairani
Maamor, Selamah
author_sort Md Dahlan, Nuarrual Hilal
collection UUM
description The Malaysian Shariah Advisory Council ('SAC'), established under the Central Bank of Malaysia Act 2009 (Act 701), acts as an authority for the ascertainment of Islamic law in the operation of Islamic Financial Institutions ('IFIs').Its decision is binding on all IFIs, the Bank Negara Malaysia, the Shariah Committee, the court of law and the arbitrators in Malaysia. Nonetheless, this power may be abused by the SAC to the detriment of the customer stakeholders as the SAC is immune from any legal action.This paper aims to examine the features and legal issues of the SAC.The examination uses legal research methodology.This paper finds that the immunity conferred on the SAC should be abolished and be subject to the judicial scrutiny for the benefits of the IFIs' development in Malaysia.At the ending part of this paper, the authors provide certain recommendations in regard to the issues discussed.
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spelling uum-182152019-04-24T08:56:40Z https://repo.uum.edu.my/id/eprint/18215/ The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues Md Dahlan, Nuarrual Hilal Abdul Jalil, Ahmad Zafarullah Zainol, Zairani Maamor, Selamah K Law (General) The Malaysian Shariah Advisory Council ('SAC'), established under the Central Bank of Malaysia Act 2009 (Act 701), acts as an authority for the ascertainment of Islamic law in the operation of Islamic Financial Institutions ('IFIs').Its decision is binding on all IFIs, the Bank Negara Malaysia, the Shariah Committee, the court of law and the arbitrators in Malaysia. Nonetheless, this power may be abused by the SAC to the detriment of the customer stakeholders as the SAC is immune from any legal action.This paper aims to examine the features and legal issues of the SAC.The examination uses legal research methodology.This paper finds that the immunity conferred on the SAC should be abolished and be subject to the judicial scrutiny for the benefits of the IFIs' development in Malaysia.At the ending part of this paper, the authors provide certain recommendations in regard to the issues discussed. Inderscience Publishers 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/18215/7/JGBA%209%283%29_284_298.pdf Md Dahlan, Nuarrual Hilal and Abdul Jalil, Ahmad Zafarullah and Zainol, Zairani and Maamor, Selamah (2016) The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues. Journal for Global Business Advancement, 9 (3). pp. 284-298. ISSN 1746-966X http://doi.org/10.1504/JGBA.2016.076718 doi:10.1504/JGBA.2016.076718 doi:10.1504/JGBA.2016.076718
spellingShingle K Law (General)
Md Dahlan, Nuarrual Hilal
Abdul Jalil, Ahmad Zafarullah
Zainol, Zairani
Maamor, Selamah
The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title_full The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title_fullStr The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title_full_unstemmed The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title_short The Shariah Advisory Council in the Malaysian Islamic financial institutions: features and legal issues
title_sort shariah advisory council in the malaysian islamic financial institutions features and legal issues
topic K Law (General)
url https://repo.uum.edu.my/id/eprint/18215/7/JGBA%209%283%29_284_298.pdf
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