Islamic Financial Services Act 2013 and Shari’ah Governance: A Review

Abstract

This chapter aims to highlight the background of Islamic Financial Services Act 2013 (IFSA). It also highlights experiences of Malaysia in dealing with IFSA. The analysis is tackled along the lines of the background and the constitutional frameworks of the country, the initiatives introduced by the government for the development of shari’ah compliance within the Islamic banking and finance fraternity as well as the relevant organs in carrying out the audit exercises over the Islamic banks and financial institutions in Malaysia. The chapter critically elucidates the implementation of the IFSA and its impact on shari’ah governance. It concludes by suggesting that the areas in the constitutional legal framework of the contemporary Islamic finance in Malaysia support the development of the Islamic banking and finance fraternity as with the shari’ah compliance of the same and it applies to all cooperative society.

Citation

Nor, M.Z.M. (2019), "Islamic Financial Services Act 2013 and Shari’ah Governance: A Review", Azid, T., Alnodel, A.A. and Qureshi, M.A. (Ed.) Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice, Emerald Publishing Limited, Leeds, pp. 221-226. https://doi.org/10.1108/978-1-78973-007-420191019