Islamic Financial Services Act 2013 · s 29

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29.
Power of Bank to specify standards on Shariah matters
(1) The Bank may, in accordance with the advice or ruling of the Shariah Advisory Council, specify standards—
(a) on Shariah matters in respect of the carrying on of business, affair or activity by an institution which requires the ascertainment of Islamic law by the Shariah Advisory
Council; and
(b) to give effect to the advice or rulings of the Shariah
Advisory Council.
(2) In addition, the Bank may also specify standards relating to any of the following matters which does not require the ascertainment of Islamic law:
(a) Shariah governance including—
(i) functions and duties of the board of directors, senior officers and members of the Shariah committee of an institution in relation to compliance with
Shariah;
(ii) fit and proper requirements or disqualifications of a member of a Shariah committee; and
(iii) internal Shariah compliance functions; and

Islamic Financial Services                              69
(b) any other matter in relation to the business, affair and activity of an institution for the purposes of compliance with Shariah.
(3) Every institution, its director, chief executive officer, senior officer or member of a Shariah committee shall at all times comply with the standards specified by the Bank under subsections (1)
and (2) which are applicable to such person.
(4) Every institution shall at all times—
(a) ensure that its internal policies and procedures on Shariah governance are consistent with the standards specified by the Bank under this section; and
(b) whether or not standards have been specified by the Bank under this section, manage its business, affairs and activities in a manner which is not contrary to Shariah.
(5) Every director, officer or a member of a Shariah committee of an institution shall at all times comply with the internal policies and procedures adopted by such institution to implement the standards specified by the Bank under subsection (1) or (2).
(6) Any person who fails to comply with any standards specified under subsection (1), commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.
Shariah governance

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s 29Power of Bank to specify standards on Shariah matters

(1)

The Bank may, in accordance with the advice or ruling of the Shariah Advisory Council, specify standards—

(a)

on Shariah matters in respect of the carrying on of business, affair or activity by an institution which requires the ascertainment of Islamic law by the Shariah Advisory

Council; and

(b)

to give effect to the advice or rulings of the Shariah

Advisory Council.

(2)

In addition, the Bank may also specify standards relating to any of the following matters which does not require the ascertainment of Islamic law:

(a)

Shariah governance including—

(i)

functions and duties of the board of directors, senior officers and members of the Shariah committee of an institution in relation to compliance with

Shariah;

(ii)

fit and proper requirements or disqualifications of a member of a Shariah committee; and

(iii)

internal Shariah compliance functions; and

Islamic Financial Services 69

(b)

any other matter in relation to the business, affair and activity of an institution for the purposes of compliance with Shariah.

(3)

Every institution, its director, chief executive officer, senior officer or member of a Shariah committee shall at all times comply with the standards specified by the Bank under subsections (1)

and (2) which are applicable to such person.

(4)

Every institution shall at all times—

(a)

ensure that its internal policies and procedures on Shariah governance are consistent with the standards specified by the Bank under this section; and

(b)

whether or not standards have been specified by the Bank under this section, manage its business, affairs and activities in a manner which is not contrary to Shariah.

(5)

Every director, officer or a member of a Shariah committee of an institution shall at all times comply with the internal policies and procedures adopted by such institution to implement the standards specified by the Bank under subsection (1) or (2).

(6)

Any person who fails to comply with any standards specified under subsection (1), commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine not exceeding twenty-five million ringgit or to both.

Shariah governance