Islamic Financial Services Bill 2012

Legal framework for Islamic banking in the process of enactment

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JOHOR BAHARU: The new legal framework for Islamic banking and takaful is currently undergoing the legislative process towards its enactment, Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said today.

She said the new legal framework would not only streamline the legal requirements across sectors but would also ensure that the law was reflective of the nature and features of Shariah contracts.

It would also ensure that the degree of regulation would commensurate with level of risks that Islamic financial institutions, markets and products pose to the overall financial sytem, Zeti said.

“The greater clarity on the legal and prudential requirements underpinned by Shariah principles will enable participants of the Islamic financial system to align to their practices and expectations accordingly when undertaking Islamic financial business and transactions,” she said in her keynote address at the last day of the Eighth World Islamic Economic Forum (WIEF) here today.

The Governor said while Islamic finance practitioners and scholars continued to draw from the source of fiqh muamalat to create new and innovative instruments, the legal framework needed to be further strengthened to ensure alignment with new market developments.

This is to ensure that it continued to lend certainty and predictability to innovative products and financial transactions, she said. BERNAMA

Click here to read the Islamic Financial Services Bill 2012.

Zulkifli Hasan
With Grand Mufti of Bosnia and Herzegovina, Sheikh Dr. Mustafa Ceric at the University of Sarajevo.


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