The Shariah Advisory Council (SAC) of Bank Negara Malaysia at its 217th meeting on 30 September 2021 made a ruling in respect of Early Disbursement Feature prior to Tawarruq Execution for Islamic Trade Finance Products based on Tawarruq.

The SAC ruling aims to clarify on the Shariah status of the early disbursement feature prior to tawarruq execution and the operational requirements for its implementation to mitigate the Shariah non-compliance risk.

This ruling comes into effect immediately upon its initial publication on Bank Negara Malaysia’s website on 27 December 2021.

Please refer to the attachment for more information