April, 12, 2010

While many other markets are hesitating regarding the Shariah governance process for Islamic financial institutions (IFIs), Bank Negara Malaysia (BNM), the central bank, is in the process of launching a landmark Shariah governance framework (SGF) which will set the standards for Shariah compliance in Islamic finance globally for the next decade.

The new SGF will officially be launched in 2010 but will become effective in 2011 and replaces the Guidelines on the Governance of the Shariah Committee for IFIs which was introduced by the Malaysian central bank in 2004 and which outlined the role, duties and responsibilities of the Shariah committee and its members and the relationship and working arrangement between the Shariah committee at individual institutions and BNM's Shariah Advisory Council (SAC) at the national level.

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