Islamic Financial Services Act 2013 · s 28

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28.
Duty of institution to ensure compliance with Shariah
(1) An institution shall at all times ensure that its aims and operations, business, affairs and activities are in compliance with
Shariah.
(2) For the purposes of this Act, a compliance with any ruling of the Shariah Advisory Council in respect of any particular aim and operation, business, affair or activity shall be deemed to be a compliance with Shariah in respect of that aims and operations, business, affair or activity.
(3) Where an institution becomes aware that it is carrying on any of its business, affair or activity in a manner which is not in compliance with Shariah or the advice of its Shariah committee or the advice or ruling of the Shariah Advisory Council, the institution shall—
(a) immediately notify the Bank and its Shariah committee of the fact;
(b) immediately cease from carrying on such business, affair or activity and from taking on any other similar business, affair or activity; and
(c) within thirty days of becoming aware of such non-compliance or such further period as may be

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specified by the Bank, submit to the Bank a plan on the rectification of the non-compliance.
(4) The Bank may carry out an assessment as it thinks necessary to determine whether the institution has rectified the non-compliance referred to in subsection (3).
(5) Any person who contravenes subsection (1) or (3) 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.

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s 28Duty of institution to ensure compliance with Shariah

(1)

An institution shall at all times ensure that its aims and operations, business, affairs and activities are in compliance with

Shariah.

(2)

For the purposes of this Act, a compliance with any ruling of the Shariah Advisory Council in respect of any particular aim and operation, business, affair or activity shall be deemed to be a compliance with Shariah in respect of that aims and operations, business, affair or activity.

(3)

Where an institution becomes aware that it is carrying on any of its business, affair or activity in a manner which is not in compliance with Shariah or the advice of its Shariah committee or the advice or ruling of the Shariah Advisory Council, the institution shall—

(a)

immediately notify the Bank and its Shariah committee of the fact;

(b)

immediately cease from carrying on such business, affair or activity and from taking on any other similar business, affair or activity; and

(c)

within thirty days of becoming aware of such non-compliance or such further period as may be

specified by the Bank, submit to the Bank a plan on the rectification of the non-compliance.

(4)

The Bank may carry out an assessment as it thinks necessary to determine whether the institution has rectified the non-compliance referred to in subsection (3).

(5)

Any person who contravenes subsection (1) or (3) 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.