Pursuant to section 52 of the Central Bank of Malaysia Act 2009, the SAC at its 217^th SAC Meeting dated 30 September 2021, 220^th SAC Meeting dated 24 January 2022 and 236^th SAC Meeting dated 30 January 2024 made a ruling in respect of the Shariah Parameters on Transfer of Funds for Funding and Liquidity Risk Management from an Islamic Financial Institution (IFI) to a Conventional Financial Institution (CFI).

This SAC ruling aims to clarify the Shariah parameters that shall be complied with by IFIs in determining the permissibility of transfer of funds for funding and liquidity risk management, from an IFI to a CFI.

This SAC ruling comes into effect immediately upon its publication on Bank Negara Malaysia’s website on 31 May 2024

Issuance Date
31 May 2024

Effective Date
31 May 2024

Applicability
Islamic Financial Services Act (IFSA) Licensees
Financial Services Act (FSA) Licensees
Prescribed Institutions under Development Financial Institutions Act (DFIA)

Issuing Department
Islamic Finance Department

Document

• The Shariah Parameters on Transfer of Funds for Funding and Liquidity Risk Management from an Islamic Financial Institution to a Conventional Financial Institution