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The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 146th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 146thmeeting on 29 April 2014. The meeting among others, discussed issues arising from Shariah Standard on Tawarruq, endorsed Shariah Standard onMusharakah and revised specific provisions of Shariah Standard onMudarabah.
The SAC discussed the Shariah Standard on Tawarruq and viewed that the arrangement of “dual agency” in tawarruq must be supported by proper evidence of murabahah transaction between the principal and the agent. The SAC also viewed that hiwalah al-dayn (transfer of debt to third party) releases the buyer’s obligation to settle the debt arising from murabahah under thetawarruq arrangement.
This article is also available in Arabic version
