The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 134th Meeting

The Shariah Advisory Council of Bank Negara Malaysia (the SAC), in its 134th meeting dated 30 April 2013 had discussed the following Shariah issues:

1. Operation of Takaful
In the operation of takaful, the SAC had discussed these three issues:

• The conditions that enables the payment of takaful benefit from participant’s risk fund which is not based on misfortune;
• Payment of performance fee to the takaful operator, taken from the surplus of participant’s risk fund which still has qard (debt) liability; and
• The practice of profit commission in re-takaful.

2. Tawarruq or Commodity Murabahah
In the discussion of tawarruq, the SAC had discussed these two issues:

• The usage of commodity murabahah as underlying contract in a sukuk issuance programme which has few series of issuance; and
• The sukuk transaction in secondary market based on bai` dayn. 

3. Appointment of Shariah Committee for Islamic Financial Institutions
The SAC has endorsed the proposal for re-appointment of 17 Shariah Committee members and appointment of six (6) new Shariah Committee members for three (3) banking institutions and two (2) takaful operators.

This article is also available in Arabic version