The Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM) paid a courtesy visit to Majlis Agama Islam dan Adat Istiadat Melayu Kelantan (MAIK) on 24 October 2017 as part of the strategy to strengthen its collaborations with key religious institutions to further support development of Islamic finance in the country.
The SAC is established under Section 51 of the Central Bank of Malaysia Act 2009 as the authority responsible for ascertaining Shariah rulings in Islamic financial business. Appointed by His Majesty Yang di-Pertuan Agong, members of the SAC consist of prominent Shariah scholars with vast experience in finance, banking, takaful and law. The SAC also advises the Bank on any Shariah matters relating to Islamic finance, the activities or transactions of the Bank.
According to Professor Dr. Ashraf Md. Hashim, Deputy Chairman of the SAC who led the delegation, ‘dialogue such as this is useful for the SAC to foster closer ties and gain deeper insights into the needs of the local community that can be best served by Islamic finance’. The delegation included five SAC members and three BNM officers.
The SAC delegation met with YBhg Dr. Haji Nik Mohd Azlan Abd Hadi, Timbalan Yang Dipertua MAIK, mufti of Kelantan, Chief Syariah Judge, the state religious council members and MAIK’s senior officers.
Both parties discussed recent developments in Islamic finance activities at the state and national levels, including the state rahnu operations (Islamic pawn-broking). MAIK also agreed on the need to streamline the fatwa at state and federal levels to avoid potential disputes and welcome the opportunity for a greater collaboration with the SAC in the future including on knowledge sharing sessions.
‘Going forward, the SAC will continue its engagements with other state Islamic religious councils as a platform to deliberate in areas of common interest’, added Professor Dr. Ashraf.