This policy document outlines the requirements and expectations of Bank Negara Malaysia (BNM) on the application of exception in complying with Shariah, based on hajah (needs) and darurah (dire necessity) by Islamic financial institutions (IFIs) in carrying out Islamic banking and takaful business. The following are the key requirements and expectations:

(a) outline the definition of hardship, preconditions, the scope of prohibited application and parameters of different categories of hajah and darurah;

(b) clarify and strengthen the accountability of individuals responsible for the assessment, deduction as well as implementation of hajah and darurah; and

(c) outline the operational requirements and guidance in facilitating Shariah deliberation and decision-making on the application of hajah and darurah.

This policy document aims to strengthen the current methodology and processes of the IFIs in addressing the hardship faced, while offering Islamic financial business, so that the application of hajah and darurah is in accordance with BNM’s expectations.

Issuance Date
3 January 2024

Effective Date
2 January 2025

Issuing Department
Jabatan Sistem Kewangan Islam

Documents

• Hajah and Darurah Policy Document
• Frequently Asked Questions