The Shariah Advisory Council of Bank Negara Malaysia (the SAC) 159th Meeting

The Shariah Advisory Council of Bank Negara Malaysia (SAC) held its 159th meeting on 26th May 2015. The meeting discussed among others issues arising from the draft Shariah Standard on Wa`d (promise).

The SAC ruled that the subject matter of wa`d shall be Shariah-compliant actions. Furthermore, wa`d must also not be used as a means to commit Shariah non-compliant activities.

The SAC also ruled that, in the event that the promisor fails to fulfil his binding promise (wa`d mulzim), the promisee is entitled for compensation based on actual loss suffered (if any) due to the breach. The actual loss shall be determined either by an authoritative body; or through a methodology accepted as customary business practices (`urf tijari).