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Waqf :  Can Finterra Deliver The Changes Needed To Meet The Challenges?

February 9th, 2019 |

Waqf :  Can Finterra Deliver The Changes Needed To Meet The Challenges?

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Greater Awareness Efforts Needed for Islamic Finance

July 23rd, 2019 |

By Mezbah Uddin Ahmed*

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Islam for Socioeconomic, Not for Economics

April 26th, 2020 |

Islam for Socioeconomic, Not for Economics

By Yousuf Ibnul Hasan

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E-wallets: Social Impact and Shariah Issues

April 24th, 2020 |

E-wallets: Social Impact and Shariah Issues

by Dr. Moutaz Abojeib [1]

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Suggested Reading all suggested post →  

 

Reporting of Shariah Non-Compliance Events: The Case of Some Islamic Financial Institutions in Malaysia

January 31st, 2020 |

Shariah non-compliance (SNC) refers to the failure of Islamic financial institutions (IFIs), particularly Islamic banks and takaful operators, to comply with the Shariah resolutions issued by their respective Shariah committees and/or the Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM). SNC falls under the framework of operational risk as SNC risks arise from insufficient or failed internal processes and procedures in the system or the errors of people conducting those procedures. SNC incidences may expose IFIs to unfortunate implications. If no proper remedial actions are taken, such incidents might breach the Islamic Financial Services Act (IFSA) 2013, exposing the responsible persons to fines and/or imprisonment and the institution to fines and/or revocation of its license, as outlined in Section 28 (5). This article briefly highlights some policies and guidelines for mitigating SNC risks, issued by Bank Negara Malaysia (BNM) in its capacity as the regulator. It then explains how some IFIs in Malaysia have complied with those guidelines in reporting their SNC incidents.

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