The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 144th Meeting

The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 144^thmeeting on 25 February 2014. The meeting among others, discussed issues arising from Shariah Standard on Mudarabah and Shariah Standard onTawarruq.

On the Shariah Standard on Mudarabah, the preliminary view of the SAC concluded that the arrangement of mudarabah with wa`d should be strengthened through greater clarification and mentioning of the possible arrangements, which among others include an undertaking by a mudarib or agent appointed by the mudarib to purchase the mudarabah asset upon a certain specified event in the future.
 
For the Shariah Standard on Tawarruq, one of the highlighted issues was on the treatment of advance payments by the purchasing agent to the commodity provider. On this matter, the preliminary view of the SAC is that such advance payments should be treated as qard.

This article is also available in Arabic version