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

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

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Abstract

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.

Item Type: Article
Uncontrolled Keywords: Shariah Advisory Committee; SAC immunity; Shariah Advisory Council; Malaysia; Islamic banking; Islamic finance; financial institutions; legal issues; law; judicial scrutiny.
Subjects: K Law > K Law (General)
Divisions: School of Law
Depositing User: Professor Dr Nuarrual Hilal Md Dahlan
Date Deposited: 29 May 2016 01:31
Last Modified: 24 Apr 2019 08:56
URI: https://repo.uum.edu.my/id/eprint/18215

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