About the Bank
The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 158th Meeting
The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 158th meeting on 28th April 2015. The meeting discussed among others issues arising from the Shariah Standard on Hibah and Kafalah.
Hibah
The SAC ruled that hibah from a father to his child is revocable; except in the event that the ownership of the hibah asset has been transferred to a third party; or the hibah asset is encumbered or subject to claim by a third party.
The SAC also ruled that a hibah arrangement may be applied with a musyarakah contract in which a partner gives hibah to another partner in a musyarakah contract. However, the provision of hibah shall not tantamount to a guarantee of capital and/or profit by the partner.
On the issue of hibah in a qard contract, the SAC ruled that the practices of responding to a customer’s query with regard to historical rate of hibah; and providing historical details of the provision of hibah in an independent third party website, are allowed.
Kafalah
The SAC ruled that kafalah fee may be imposed on any party who benefits from the kafalah service, either on the guaranteed party, beneficiary or both or any other party as per agreed by the contracting parties.
