Bank Negara Malaysia (BNM) hosted the 6th Centralised Shariah Authorities Forum^[1] (CSAF) on 15 October 2025 in Kuala Lumpur, Malaysia. The meeting continues to serve as a key platform for centralised Shariah authorities to exchange insights and strengthen cross-jurisdiction collaboration in advancing Islamic finance.

Chaired by Dato’ Prof. Dr. Ashraf Md. Hashim, Chairman of the BNM Shariah Advisory Council, the meeting gathered more than 50 delegates from 10 participating countries^[2] as well as international Islamic standard-setting bodies^[3].

1. Authorities from participating countries shared their experiences in advancing Islamic finance, including efforts to transition from conventional banking, align Islamic finance with national development goals, and apply social finance tools to support communities. These diverse approaches, shaped by local contexts, enriched the shared understanding and progress of the global Islamic finance landscape.

2. In the area of takaful, the meeting noted the regulatory developments on broader application of ta`awun (mutual assistance) in takaful. On this, the meeting noted that BNM plans to issue a policy document on the broader application of ta`awun in takaful by end of 2025. The policy document will outline Shariah and regulatory requirements aimed at unlocking the full potential of takaful in fostering financial resilience and inclusion, in line with the objectives of Shariah (maqasid Shariah).

3. The meeting also discussed recent legal reforms that recognise the takaful fund as a separate legal entity. On this, the meeting noted that Central Bank of the United Arab Emirates plans to strengthen the governance framework of takaful funds to ensure transparency, accountability, and Shariah compliance. Key mechanism highlighted to strengthen oversight include the role of the board of trustees and the establishment of a fund charter, designed to safeguard the interests of participants and beneficiaries.

4. In relation to emerging instruments such as central bank digital currencies (CBDC), the meeting also discussed the fundamentals of modern money and its exploratory Shariah implications based on a foundational research paper published by BNM. The paper highlights the credit nature of modern money that is embedded in the structural relations between financial actors. This view aligns with the prevailing perspectives of major global monetary authorities and serves as an alternative to the mainstream conception of money. With this updated understanding, Shariah implications are explored to guide a clearer framework for discussions on digital money innovation.

5. The meeting formally accepted the Terms of Reference (ToR) for the CSAF platform, marking a significant step in strengthening the governance structure, clarifying roles and responsibilities, and enhancing coordination among member authorities to achieve shared strategic objectives.

^[1] Previously known as Centralised Shariah Advisory Authorities (CSAA).

^[2] Libya, Malaysia, Maldives, Morocco, Nigeria, Oman, Pakistan, the Philippines, United Arab Emirates and Uzbekistan (as observer).

^[3] Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB) as observers.