legal framework and regulatory issues in islamic banking

8/19/2019 Legal Framework and Regulatory Issues in Islamic Banking

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LEGAL FRAMEWORK ANDLEGAL FRAMEWORK AND

REGULATORY ISSUES INREGULATORY ISSUES IN

ISLAMIC BANKING SERVICESISLAMIC BANKING SERVICES

DR. AZNAN HASAN,DR. AZNAN HASAN,

DEPARTMENT OF ISLAMIC LAW,DEPARTMENT OF ISLAMIC LAW,AHMAD IBRAHIM KULLIYYAH OFAHMAD IBRAHIM KULLIYYAH OF

LAWSLAWS


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OUTLINESOUTLINES

An overve! o" M#$#%&#n Fn#n'#$ S%&(e)An overve! o" M#$#%&#n Fn#n'#$ S%&(e) M#$#%&#n I&$#)' Fn#n'#$ S%&(e)M#$#%&#n I&$#)' Fn#n'#$ S%&(e) Le*#$ Fr#)e!or+ "or I&$#)' Fn#n'eLe*#$ Fr#)e!or+ "or I&$#)' Fn#n'e

S#$en( "e#(re& o" v#ro& $#!& on I&$#)'S#$en( "e#(re& o" v#ro& $#!& on I&$#)'Fn#n'e n M#$#%&# #n- (er )/#'(& onFn#n'e n M#$#%&# #n- (er )/#'(& on(e /r#'('e o" I&$#)' 0n#n'e(e /r#'('e o" I&$#)' 0n#n'e

Cor( o" A--'#(on n IBF &&e&Cor( o" A--'#(on n IBF &&e&

So)e $e*#$ I&&e& #n- C#$$en*e& n (eSo)e $e*#$ I&&e& #n- C#$$en*e& n (e/r#'('e o" I&$#)' 0n#n'e n M#$#%&#/r#'('e o" I&$#)' 0n#n'e n M#$#%&# Re)e-e& #n- (e !#% "or!#r-Re)e-e& #n- (e !#% "or!#r- Con'$&onCon'$&on


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Malaysian Financial SystemMalaysian Financial System

B#n+n* S%&(e)Non3B#n+ Fn#n'#$ In(er).

Fn#n'#$ )#r+e(

Non3)on.Mon.

BNM,Co). B#n+

Fn#n'e Co)Mer'#n( B#n+&D&'on(& Ho&e&e('

MMCM

Der.Bon-E4(%

In&r#n'eCo).

DFI&

S#vn*In&(((on

Te Prov-en( 5Pen&on Fn-&

Le#&n* Co).E('

BSNBRMBP


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Islamic Financial SystemIslamic Financial System

Nn Financial

Instit!tin

Islamic Ca"ital

Ma#$et

Islamic Ban$in% IIMM

Ta$a&!l

More or $e&&, I&$#)' 0n#n'#$ 7&ne&&e&More or $e&&, I&$#)' 0n#n'#$ 7&ne&&e&

#ve /er)e#(e- n(o #$)o&( #$$ (e#ve /er)e#(e- n(o #$)o&( #$$ (e

#7ove)en(one- 0n#n'#$ #re#ove)en(one- 0n#n'#$ #re#&


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Le%al F#ame'#$ &# Islamic FinanceLe%al F#ame'#$ &# Islamic Finance

LE9AL FRAMEWORK

Re*$#(or% L#!&L#!& re$#(e- (o(r#n'(on&

B#n+n* 5 T#+#"$ ICM

Con(r#'(& A'( 1:8;N#(on#$ L#n- Co-e 1:<Co)/#ne& A'( 1:IBA 1:>BAFIA 1:>:DFIA 2;;2 T#+#"$ 1:>69ov. Inve&(. A'(

CMSA 2;;?@#ro& R$e&5 9-e$ne&


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<

Salient Feat!#es & Va#i!s La's n IslamicSalient Feat!#es & Va#i!s La's n Islamic

Finance in Malaysia an( T)ei# Im"acts n t)eFinance in Malaysia an( T)ei# Im"acts n t)e

*#actice & Islamic Finance*#actice & Islamic Finance

Cen(r#$ B#n+ A'( 1:8>Cen(r#$ B#n+ A'( 1:8> Te )#n #(or(% "or (e )one(#r% #n- Te )#n #(or(% "or (e )one(#r% #n-

/r-en(#$ 0n#n'#$ re*$#(on&/r-en(#$ 0n#n'#$ re*$#(on& Se'. 6 o" (e CBTSe'. 6 o" (e CBT

Te /rn'/#$ o7e'(& o" (e B#n+ &#$$ 7e Te /rn'/#$ o7e'(& o" (e B#n+ &#$$ 7e

(a)(a) (o &&e 'rren'% n M#$#%&# #n- (o +ee/ re&erve& "e*#r-n*(o &&e 'rren'% n M#$#%&# #n- (o +ee/ re&erve& "e*#r-n*(e v#$e o" (e 'rren'%(e v#$e o" (e 'rren'%

(b)(b) (o #'( #& # 7#n+er #n- # 0n#n'#$ #-v&er (o (e 9overn)en((o #'( #& # 7#n+er #n- # 0n#n'#$ #-v&er (o (e 9overn)en((c)(c) (o /ro)o(e )one(#r% &(#7$(% #n- # &on- 0n#n'#$ &(r'(re(o /ro)o(e )one(#r% &(#7$(% #n- # &on- 0n#n'#$ &(r'(re

(ca)(ca) (o /ro)o(e (e re$#7$e, e'en( #n- &)oo( o/er#(on o"(o /ro)o(e (e re$#7$e, e'en( #n- &)oo( o/er#(on o"n#(on#$ /#%)en( #n- &e(($e)en( &%&(e)& #n- (o en&re (#( (en#(on#$ /#%)en( #n- &e(($e)en( &%&(e)& #n- (o en&re (#( (en#(on#$ /#%)en( #n- &e(($e)en( &%&(e)& /o$'% & -re'(e- (o (en#(on#$ /#%)en( #n- &e(($e)en( &%&(e)& /o$'% & -re'(e- (o (e#-v#n(#*e o" M#$#%&# #n-#-v#n(#*e o" M#$#%&# #n-

(d)(d) (o nGen'e (e 're-( &(#(on (o (e #-v#n(#*e o" M#$#%&#.(o nGen'e (e 're-( &(#(on (o (e #-v#n(#*e o" M#$#%&#.


7/106?

Cnt+(Cnt+(

A)on* (e )#n (#&+&A)on* (e )#n (#&+&

3 I)/$e)en(#(on o" #$$ $#!& #n-3 I)/$e)en(#(on o" #$$ $#!& #n-re*$#(on& re$#(e- (o 0n#n'#$ #'(v(e&re*$#(on& re$#(e- (o 0n#n'#$ #'(v(e&

3 n(#(n* v#ro& '#n*e& #n-3 n(#(n* v#ro& '#n*e& #n-#)en-)en(& (o (e $#!& !en#)en-)en(& (o (e $#!& !enne'e&r%Jne'e&r%J

3 I&&n* v#ro& r$e&, *-e$ne& #n-3 I&&n* v#ro& r$e&, *-e$ne& #n-'r'$#r& re$ev#n( n&(((on&, "ro) ()e'r'$#r& re$ev#n( n&(((on&, "ro) ()e(o ()e(o ()e


8/106>

Cnt+(Cnt+(

Te )o&( re$ev#n( /rov&on /e'$#r (o IBF Te )o&( re$ev#n( /rov&on /e'$#r (o IBF Se'. 1


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:

Cnt+(Cnt+(

W$$ 7e re"erre- (o 7% (e 'or( or #r7(r#(or nW$$ 7e re"erre- (o 7% (e 'or( or #r7(r#(or n-&/(e& nvo$vn* &#r# &&e& n IBF 5 T#+#"$.-&/(e& nvo$vn* &#r# &&e& n IBF 5 T#+#"$.

Ho!ever, #n% r$n* )#-e 7% (e S%#r#Ho!ever, #n% r$n* )#-e 7% (e S%#r#A-v&or% Con'$A-v&or% Con'$

a)a) " (e re"eren'e !#& )#-e 7% # 'or(," (e re"eren'e !#& )#-e 7% # 'or(, bebe

taken into consideration by the courttaken into consideration by the court nn#rrvn* #( (& -e'&on #n-#rrvn* #( (& -e'&on #n-

(b)(b) " (e re"eren'e !#& )#-e 7% #n #r7(r#(or," (e re"eren'e !#& )#-e 7% #n #r7(r#(or,be binding on the arbitratorbe binding on the arbitrator..


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Amen(ments ma(e t CBA ,act Amen(ments ma(e t CBA ,act

-./0 1..2-./0 1..2 Con&&(en( !( (e *o#$ (o /ro)o(e M#$#%&#Con&&(en( !( (e *o#$ (o /ro)o(e M#$#%&#

#& #n n(ern#(on#$ 'en(re "or I&$#)' 0n#n'e,#& #n n(ern#(on#$ 'en(re "or I&$#)' 0n#n'e,

(e A'( *ve& -e re'o*n(on (o (e I&$#)'(e A'( *ve& -e re'o*n(on (o (e I&$#)'

0n#n'#$ &%&(e) n M#$#%&#.0n#n'#$ &%&(e) n M#$#%&#. Te A'( #$&o /rov-e& "or #n en#n'e- ro$e o" Te A'( #$&o /rov-e& "or #n en#n'e- ro$e o"

(e S%#r# A-v&or% Con'$ on I&$#)'(e S%#r# A-v&or% Con'$ on I&$#)'

Fn#n'e (o "#'$(#(e 'on&&(en( #//$'#(on o"Fn#n'e (o "#'$(#(e 'on&&(en( #//$'#(on o"

I&$#)' $#! on I&$#)' 0n#n'#$ )#((er&.I&$#)' $#! on I&$#)' 0n#n'#$ )#((er&. M#n /rov&on& o" (e #'( re*#r-n* I&$#)'M#n /rov&on& o" (e #'( re*#r-n* I&$#)'

0n#n'e #re -&'&&e- ere0n#n'e #re -&'&&e- ere


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Rec%nitin & Islamic &inance asRec%nitin & Islamic &inance as

mainst#eam &inance in Malaysiamainst#eam &inance in Malaysia

Dual fnancial system :Dual fnancial system : Se' 2? Te 0n#n'#$ &%&(e) n M#$#%&#Se' 2? Te 0n#n'#$ &%&(e) n M#$#%&#

&#$$ 'on&&( o" (e 'onven(on#$ 0n#n'#$&#$$ 'on&&( o" (e 'onven(on#$ 0n#n'#$

&%&(e) #n- (e I&$#)' 0n#n'#$ &%&(e).&%&(e) #n- (e I&$#)' 0n#n'#$ &%&(e). T& &e'(on /rov-e& I&$#)' 0n#n'e (o 7e T& &e'(on /rov-e& I&$#)' 0n#n'e (o 7e

#( /#r !( 'onven(on#$, no( &( # n'e#( /#r !( 'onven(on#$, no( &( # n'e

#re#.#re#. De)on&(r#(e& (e n(en(on o" BNM (oDe)on&(r#(e& (e n(en(on o" BNM (o

/ro)o(e "r(er I&$#)' 7#n+n* #n-/ro)o(e "r(er I&$#)' 7#n+n* #n-

0n#n'e n M#$#%&#0n#n'e n M#$#%&#


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*#3isins Relatin% t SAC*#3isins Relatin% t SAC

1JE&(#7$&)en(1JE&(#7$&)en( 81.81. 1J Te B#n+ )#% e&(#7$& #1J Te B#n+ )#% e&(#7$& #

S#r# A-v&or% Con'$ on I&$#)'S#r# A-v&or% Con'$ on I&$#)'Fn#n'e !' &#$$ 7e (e #(or(% "orFn#n'e !' &#$$ 7e (e #(or(% "or

(e #&'er(#n)en( o" I&$#)' $#! "or (e(e #&'er(#n)en( o" I&$#)' $#! "or (e

/r/o&e& o" I&$#)' 0n#n'#$ 7&ne&&./r/o&e& o" I&$#)' 0n#n'#$ 7&ne&&.

2J Te S#r# A-v&or% Con'$ )#%2J Te S#r# A-v&or% Con'$ )#%

-e(er)ne (& o!n /ro'e-re&.-e(er)ne (& o!n /ro'e-re&.


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Cnt+(Cnt+( 2) Functions o Shariah Advisory Council2) Functions o Shariah Advisory Council

52 !") #he Shariah Advisory Council shall have the52 !") #he Shariah Advisory Council shall have theollo$ing unctions:ollo$ing unctions:

#J#J (o #&'er(#n (e I&$#)' $#! on #n% 0n#n'#$ )#((er #n- &&e # r$n*(o #&'er(#n (e I&$#)' $#! on #n% 0n#n'#$ )#((er #n- &&e # r$n*

/on re"eren'e )#-e (o ( n #''or-#n'e !( (& P#r(/on re"eren'e )#-e (o ( n #''or-#n'e !( (& P#r(

7J7J (o #-v&e (e B#n+ on #n% S#r# &&e re$#(n* (o I&$#)' 0n#n'#$(o #-v&e (e B#n+ on #n% S#r# &&e re$#(n* (o I&$#)' 0n#n'#$

7&ne&&, (e #'(v(e& or (r#n'(on& o" (e B#n+7&ne&&, (e #'(v(e& or (r#n'(on& o" (e B#n+

'J'J (o /rov-e #-v'e (o #n% I&$#)' 0n#n'#$ n&(((on or #n% o(er(o /rov-e #-v'e (o #n% I&$#)' 0n#n'#$ n&(((on or #n% o(er/er&on #& )#% 7e /rov-e- n-er #n% !r((en $#! #n-/er&on #& )#% 7e /rov-e- n-er #n% !r((en $#! #n-

-J-J &' o(er "n'(on& #& )#% 7e -e(er)ne- 7% (e B#n+.&' o(er "n'(on& #& )#% 7e -e(er)ne- 7% (e B#n+.

2) For the %ur%oses o this &art' (ruling means any2) For the %ur%oses o this &art' (ruling means any

ruling made by the Shariah Advisory Council or theruling made by the Shariah Advisory Council or the

ascertainment o *slamic la$ or the %ur%oses oascertainment o *slamic la$ or the %ur%oses o*slamic fnancial business*slamic fnancial business


14/106

Cnt+(Cnt+(

J A//on()en( Se'. 8J A//on()en( Se'. 8

A//on()en( 7% Te Y#n* -3Per(#nA//on()en( 7% Te Y#n* -3Per(#n

A*on* on (e #-v'e o" (e Mn&(er #"(erA*on* on (e #-v'e o" (e Mn&(er #"(er

'on&$(#(on !( (e B#n+.'on&$(#(on !( (e B#n+. Per&on !o #re 4#$0e- n (e S#r#, orPer&on !o #re 4#$0e- n (e S#r#, or

!o #ve +no!$e-*e or e=/eren'e n (e!o #ve +no!$e-*e or e=/eren'e n (e

S#r# #n- n 7#n+n*, 0n#n'e, $#! orS#r# #n- n 7#n+n*, 0n#n'e, $#! or&' o(er re$#(e- -&'/$ne& #& )e)7er&&' o(er re$#(e- -&'/$ne& #& )e)7er&

o" (e S#r# A-v&or% Con'$.o" (e S#r# A-v&or% Con'$.


15/106

Cnt+(Cnt+(

6J Con&$(#(on 7% BNM #n- I&$#)'6J Con&$(#(on 7% BNM #n- I&$#)'0n#n'#$ In&(((on&0n#n'#$ In&(((on&

#he +ank and *slamic fnancial institutions to consult#he +ank and *slamic fnancial institutions to consult

Shariah Advisory CouncilShariah Advisory Council

55 !") #he +ank shall consult the Shariah Advisory55 !") #he +ank shall consult the Shariah Advisory

Council on any matter,Council on any matter,

#J#J re$#(n* (o I&$#)' 0n#n'#$ 7&ne&& #n-re$#(n* (o I&$#)' 0n#n'#$ 7&ne&& #n-

7J7J "or (e /r/o&e o" '#rr%n* o( (& "n'(on& or"or (e /r/o&e o" '#rr%n* o( (& "n'(on& or

'on-'(n* (& 7&ne&& or ##r& n-er (& A'( or #n% o(er'on-'(n* (& 7&ne&& or ##r& n-er (& A'( or #n% o(er

!r((en $#! n #''or-#n'e !( (e S#r#,!r((en $#! n #''or-#n'e !( (e S#r#, !' re4re& (e #&'er(#n)en( o" I&$#)' $#! 7% (e!' re4re& (e #&'er(#n)en( o" I&$#)' $#! 7% (e

S#r# A-v&or% Con'$.S#r# A-v&or% Con'$.


16/106

Cnt+(Cnt+(

2J An% I&$#)' 0n#n'#$ n&(((on n2J An% I&$#)' 0n#n'#$ n&(((on n

re&/e'( o" (& I&$#)' 0n#n'#$ 7&ne&&,re&/e'( o" (& I&$#)' 0n#n'#$ 7&ne&&,

)#%)#%

#J#J re"er "or # r$n* orre"er "or # r$n* or 7J7J &ee+ (e #-v'e,&ee+ (e #-v'e,

o" (e S#r# A-v&or% Con'$ on (eo" (e S#r# A-v&or% Con'$ on (e

o/er#(on& o" (& 7&ne&& n or-er (oo/er#(on& o" (& 7&ne&& n or-er (o#&'er(#n (#( ( -oe& no( nvo$ve #n%#&'er(#n (#( ( -oe& no( nvo$ve #n%

e$e)en( !' & n'on&&(en( !( (ee$e)en( !' & n'on&&(en( !( (e

S#r#S#r#


17/106

Cnt+(Cnt+( 8J De'&on )#-e 7% SAC !( re*#r-& (o re"eren'e8J De'&on )#-e 7% SAC !( re*#r-& (o re"eren'e

re"erre- (o ( 7% (e Cor( #n- Ar7(r#(or&re"erre- (o ( 7% (e Cor( #n- Ar7(r#(or& -eerence to Shariah Advisory Council or ruling rom court or-eerence to Shariah Advisory Council or ruling rom court orarbitratorarbitrator

8


18/106

Cnt+(Cnt+(

.) /0ect o Shariah rulings.) /0ect o Shariah rulings

8?. An% r$n* )#-e 7% (e S#r#8?. An% r$n* )#-e 7% (e S#r#A-v&or% Con'$ /r&#n( (o #A-v&or% Con'$ /r&#n( (o #

re"eren'e )#-e n-er (& P#r( &#$$re"eren'e )#-e n-er (& P#r( &#$$

7e 7n-n* on (e I&$#)' 0n#n'#$7e 7n-n* on (e I&$#)' 0n#n'#$

n&(((on& n-er &e'(on 88 #n- (en&(((on& n-er &e'(on 88 #n- (e'or( or #r7(r#(or )#+n* # re"eren'e'or( or #r7(r#(or )#+n* # re"eren'e

n-er &e'(on 8


19/106

Cnt+(Cnt+(

?J?J Shariah Advisory Council rulingShariah Advisory Council ruling

%revails%revails

8>. Were (e r$n* *ven 7% # S#r#8>. Were (e r$n* *ven 7% # S#r#7o-% or 'o))((ee 'on&(((e- n7o-% or 'o))((ee 'on&(((e- n

M#$#%&# 7% #n I&$#)' 0n#n'#$ n&(((onM#$#%&# 7% #n I&$#)' 0n#n'#$ n&(((on

& -eren( "ro) (e r$n* *ven 7% (e& -eren( "ro) (e r$n* *ven 7% (eS#r# A-v&or% Con'$, (e r$n* o" (eS#r# A-v&or% Con'$, (e r$n* o" (e

S#r# A-v&or% Con'$ &#$$ /rev#$.S#r# A-v&or% Con'$ &#$$ /rev#$.

&


20/106

*#mtin & Malaysia as an*#mtin & Malaysia as an

Inte#natinal Islamic Financial Cent#eInte#natinal Islamic Financial Cent#e


21/106

21

Relate( G!i(elineRelate( G!i(eline

9-e$ne& o" (e 9overn#n'e o"9-e$ne& o" (e 9overn#n'e o"

S#r# Co))((ee& "or I&$#)'S#r# Co))((ee& "or I&$#)'

Fn#n'#$ In&(((on& BNM9PSIJFn#n'#$ In&(((on& BNM9PSIJ

A S#r# 7o-% n (e n-&(r% !'A S#r# 7o-% n (e n-&(r% !'

& (o 7e +no!n #& # S#r#& (o 7e +no!n #& # S#r#

Co))((ee & (o 7e e&(#7$&e-Co))((ee & (o 7e e&(#7$&e-

Re$#(on&/ /$#%& # 'o)/$e)en(#r%Re$#(on&/ /$#%& # 'o)/$e)en(#r%

ro$e (o SAC o" BNMro$e (o SAC o" BNM


22/106

22

A""licatin & t)e GL A""licatin & t)e GL

A//$'#7$e (o #$$ Fn#n'#$ In&(((on&A//$'#7$e (o #$$ Fn#n'#$ In&(((on&

re*$#(e- 5 &/erv&e- 7% BNM.re*$#(e- 5 &/erv&e- 7% BNM.

In'$-n*3In'$-n*3

33 IBAIBA

33 BAFIA 3 I&$#)' B#n+n* S'e)eBAFIA 3 I&$#)' B#n+n* S'e)e

B#n+&B#n+& 33 DFIADFIA

33 T#+#"$ T#+#"$


23/106

2

S)a#ia) CmmitteeS)a#ia) Cmmittee

Ever% Fn#n'#$ In&(((on & re4re-Ever% Fn#n'#$ In&(((on & re4re-

(o e&(#7$& # SC(o e&(#7$& # SC

In (e '#&e o" BAFIA 7#n+&, ( )#%In (e '#&e o" BAFIA 7#n+&, ( )#%

e&(#7$& one SC "or (e 7#n+n*e&(#7$& one SC "or (e 7#n+n*

*ro/*ro/


24/106

26

Mem4e#s)i"Mem4e#s)i"

S#$$ 'on&&( # )n)) o" S#$$ 'on&&( # )n)) o"

#$0'#(on I&$#)' r&/r-en'e#$0'#(on I&$#)' r&/r-en'e

/$& e=/eren'e 5 e=/er(&e/$& e=/eren'e 5 e=/er(&e


25/106

28

Rest#ictinsRest#ictins

No )e)7er& "or) SAC o" BNMNo )e)7er& "or) SAC o" BNM

&e'(on 1


26/106

2<

D!ties 5 Res"nsi4ilitiesD!ties 5 Res"nsi4ilities

To #-v&e (e Bo#r- on S#r# )#((er& n To #-v&e (e Bo#r- on S#r# )#((er& n

(& 7&ne&& o/er#(on (o en&re 'o)/$#n'e(& 7&ne&& o/er#(on (o en&re 'o)/$#n'e

To en-or&e S#r# 'o)/$#n'e M#n#$ To en-or&e S#r# 'o)/$#n'e M#n#$

To en-or&e #n- v#$-#(e re$ev#n( To en-or&e #n- v#$-#(e re$ev#n(-o')en(#(on& (o en&re (e /ro-'(& o"-o')en(#(on& (o en&re (e /ro-'(& o"

IFI 'o)/$% !( &#r#.IFI 'o)/$% !( &#r#.

To #-v&e on )#((er& (o 7e re"erre- (o (e To #-v&e on )#((er& (o 7e re"erre- (o (e

SAC. In '#&e o" 'onG'(SAC. In '#&e o" 'onG'( o/non o" (e SACo/non o" (e SAC

!$ /rev#$!$ /rev#$


27/106

2?

Rele3ant Stat!tes6 *#3isins an(Rele3ant Stat!tes6 *#3isins an(

CasesCases

Re*$#(or%Re*$#(or%

3 IBA3 IBA

3 BAFIA3 BAFIA A--'#(onA--'#(on

3 W#( $#! !$$ 7e #//$'#7$e3 W#( $#! !$$ 7e #//$'#7$e

3 A-v#n(#*e& #n- D-v#n(#*e&3 A-v#n(#*e& #n- D-v#n(#*e&


28/106

ISLAMIC BANKING ACT 1983ISLAMIC BANKING ACT 1983

brief Act of 60 sections & 8 partsbrief Act of 60 sections & 8 parts modelled from the Banking Act 1973 withmodelled from the Banking Act 1973 with

minor modications to sit shariahminor modications to sit shariahre!irementsre!irements

pro"ides licensing & reglation of #slamicpro"ides licensing & reglation of #slamic

banksbanks establishment of B#$B & B$$Bestablishment of B#$B & B$$B amendment in %003amendment in %003 #mportant pro"isions salient featres of#mportant pro"isions salient featres of

#BA '#BA ' (enition ) *ec %(enition ) *ec % +icensing ) *ec 3+icensing ) *ec 3 *A, ) *ec 13*A, ) *ec 13 -inancial re!irements .art ###-inancial re!irements .art ###


29/106

2:

Cnt+(Cnt+(

Pro'e-r#$ #n- no( &7&(#n(ve.Pro'e-r#$ #n- no( &7&(#n(ve.

M#n$% /rov-e& "or (e $'en&n* 5M#n$% /rov-e& "or (e $'en&n* 5

re*$#(on o" I&$#)' 7#n+n*re*$#(on o" I&$#)' 7#n+n*

7&ne&& n M#$#%&#7&ne&& n M#$#%&#

A)en-e- n 2;;, (o #$$o! "or #A)en-e- n 2;;, (o #$$o! "or #

7e((er &/erv&on "ro) BNM7e((er &/erv&on "ro) BNM


30/106

;

Im"#tant "#3isin & IBAIm"#tant "#3isin & IBA

De0n(onDe0n(on Se' 2 o" IBA !#( & I&$#)' B#n+n*JSe' 2 o" IBA !#( & I&$#)' B#n+n*J

3 I&$#)' B#n+ #& #n% 'o)/#n% !'3 I&$#)' B#n+ #& #n% 'o)/#n% !'

'#rre& on I&$#)' 7#n+n* 7&ne&& #n-'#rre& on I&$#)' 7#n+n* 7&ne&& #n-o$-& # v#$- $'en'eo$-& # v#$- $'en'e

3 I&$#)' 7#n+n* 7&ne&& #& 7#n+n*3 I&$#)' 7#n+n* 7&ne&& #& 7#n+n*

7&ne&& !o&e #)& #n- o/er#(on& -o7&ne&& !o&e #)& #n- o/er#(on& -ono( nvo$ve #n% e$e)en( !' & no(no( nvo$ve #n% e$e)en( !' & no(

#//rove- 7% (e Re$*on o" I&$#).#//rove- 7% (e Re$*on o" I&$#).


31/106

1

O4se#3atinO4se#3atin

Too !-e 5 *ener#$ Q re$*on o" I&$#) Too !-e 5 *ener#$ Q re$*on o" I&$#)

B#n+n* 7&ne&& &o$- )rror (eB#n+n* 7&ne&& &o$- )rror (e

'onven(on#$'onven(on#$

W#( )##7 &o$- 7e "o$$o!e-W#( )##7 &o$- 7e "o$$o!e-

C#n # )nor o/non 7e #''e/(e- nC#n # )nor o/non 7e #''e/(e- n

#n% &'oo$ o" $#! on$% 7e #//$e-#n% &'oo$ o" $#! on$% 7e #//$e- O//or(n(% or (re#(O//or(n(% or (re#(


32/106

2

O""#t!nitiesO""#t!nities

W-e -e0n(on C#n '#rr% o(W-e -e0n(on C#n '#rr% o(

nor)#$ 7&ne&&e&nor)#$ 7&ne&&e&

C#n &e#r' "or # ver% )nor o/nonC#n &e#r' "or # ver% )nor o/non

n #n% &'oo$ o" $#!n #n% &'oo$ o" $#!

W' & no( #//rove- 7% re$*on o"W' & no( #//rove- 7% re$*on o"

I&$#)I&$#)

Innov#(on& #n- 0n#n'#$ en*neern*Innov#(on& #n- 0n#n'#$ en*neern*

n /ro-'( -eve$o/)en(n /ro-'( -eve$o/)en(


33/106

T)#eats7T)#eats7

A7&e o" r&(' o/non&A7&e o" r&(' o/non&

S#r# Ar7(r#*e Re$%n* on (eS#r# Ar7(r#*e Re$%n* on (e

e#&e&( & no( #$$o!e-e#&e&( & no( #$$o!e-


34/106

6

Im"#tant *#3isins in IBA ,10Im"#tant *#3isins in IBA ,10

L'en&n* Se' 1JL'en&n* Se' 1J

3 I&$#)' 7#n+n* 7&ne&& &#$$ no(3 I&$#)' 7#n+n* 7&ne&& &#$$ no(

7e (r#n'(e- n M#$#%&# e='e/( 7%7e (r#n'(e- n M#$#%&# e='e/( 7%

# 'o)/#n% !' o$- # v#$- $'en'e# 'o)/#n% !' o$- # v#$- $'en'e

n !r(n*n !r(n*


35/106

Iss!esIss!es

/nl compan registered nder/nl compan registered nder

,ompanies Act can operate #B,ompanies Act can operate #B

,ompanies enacted nder dierent,ompanies enacted nder dierent

laws cannot get the license as #Blaws cannot get the license as #B eg' Bank 2erasama 4akat 5$ Bhdeg' Bank 2erasama 4akat 5$ Bhd

4egistered nder ,o)operati"e4egistered nder ,o)operati"e

*ocieties Act 198*ocieties Act 198 B24$ isB24$ is de factode facto #slamic bank bt#slamic bank bt

notnot de jurede jure #slamic bank #slamic bank

8


36/106

<

Im"#tant *#3isin ,80Im"#tant *#3isin ,80

Wo De'-e& on S#r#Wo De'-e& on S#r#

Co)/$#n'eCo)/$#n'e

Se'. o" IBA $'en&n* o" IBJ n(erSe'. o" IBA $'en&n* o" IBJ n(er

#$#.#$#.

3 M&( on$% '#rr% #'(v(e& no(3 M&( on$% '#rr% #'(v(e& no(

'on(r#r% (o re$*on o" I&$#)'on(r#r% (o re$*on o" I&$#)

3 M&( e&(#7$&e- SC (o #-v&e (e3 M&( e&(#7$&e- SC (o #-v&e (e

7#n+ on re$*on.7#n+ on re$*on.


37/106

?

Cnt+(Cnt+(

Te )e '#n #$&o 7e &een n Te )e '#n #$&o 7e &een n

3 T#+#"$ A'( &e' 8J7J3 T#+#"$ A'( &e' 8J7J

3 Pro&/e'(& "or (e &&#n'e o" Un(3 Pro&/e'(& "or (e &&#n'e o" Un((r&((r&(

3 9-e$ne& "or I&$#)' Se'r(e&3 9-e$ne& "or I&$#)' Se'r(e&


38/106

#$./4A .4/:#*#/* 5#$./4A .4/:#*#/* 5

*hariah Ad"isor ,oncil 5sec 3 & s 13A*hariah Ad"isor ,oncil 5sec 3 & s 13A

+icence will not be gi"en if no *A,+icence will not be gi"en if no *A,

Bank shall compl with the ad"ice ofBank shall compl with the ad"ice of

*A,*A,

*A, to seek ad"ice of *A, of B$*A, to seek ad"ice of *A, of B$

;niformit of standard practice &;niformit of standard practice &

prodct de"elopment between #Bsprodct de"elopment between #Bs

*A, to ensre adherence of shariah*A, to ensre adherence of shariahprinciples in the operation & prodctprinciples in the operation & prodct

inno"ationsinno"ations


39/106

:

Iss!es n S)a#ia) S!"e#3isinIss!es n S)a#ia) S!"e#3isin

A'(ve or /#&&ve 'on(r7(on&A'(ve or /#&&ve 'on(r7(on&

Dver&0'#(on 5 &(#n-#r-(onDver&0'#(on 5 &(#n-#r-(on

Kno!$e-*e n o(er #re#&Kno!$e-*e n o(er #re#&


40/106

-inancial 4e!irements &-inancial 4e!irements &

(ties 5.art ###(ties 5.art ###

he #BA compl with prdential & nancialhe #BA compl with prdential & nancialre!irements similar with con"entionalre!irements similar with con"entional

banksbanks

eg' capital ade!ac framework < stattoreg' capital ade!ac framework < stattorreser"es < li!idit framework < statisticalreser"es < li!idit framework < statisticalreporting < adited nancial reports


41/106

BANKING AND FINANCIAL INSTITUTION ACT 1989BANKING AND FINANCIAL INSTITUTION ACT 1989

(BAFIA)(BAFIA)

BA-#A replaces Banking Act 1973 & -inanceBA-#A replaces Banking Act 1973 & -inance,ompanies Act 1969,ompanies Act 1969

.ro"ides laws for licensing & reglation of.ro"ides laws for licensing & reglation ofinstittions carring banking & nance= merchantinstittions carring banking & nance= merchant

banking= discont hose & mone brokingbanking= discont hose & mone brokingbsinessesbsinesses #n 1993 B$ allows con"entional banking#n 1993 B$ allows con"entional banking

instittions to participate in #B- sing e>istinginstittions to participate in #B- sing e>istingstrctrestrctre

As a reslt= BA-#A was amended 5sec 1% to' As a reslt= BA-#A was amended 5sec 1% to'

5i5i -ormalise the carring on of #slamic banking-ormalise the carring on of #slamic bankingbsiness b con"entional bank bsiness b con"entional bank

5ii5ii ?stablishment of *A, to ad"ise #slamic prodct?stablishment of *A, to ad"ise #slamic prodct


42/106

62

Ban$in% an( &inancialBan$in% an( &inancial

Instit!tins Act /292Instit!tins Act /292

Se'(on 126 1J3 E='e/( #& /rov-e- nSe'(on 126 1J3 E='e/( #& /rov-e- n

&e'(on , no(n* n (& A'( or (e&e'(on , no(n* n (& A'( or (e

I&$#)' 7#n+n* A'( 1:> &#$$ /ro7( orI&$#)' 7#n+n* A'( 1:> &#$$ /ro7( orre&(r'( #n% $'en&e- n&(((on "ro)re&(r'( #n% $'en&e- n&(((on "ro)

'#rr%n* on I&$#)' 7#n+n* 7&ne&& or'#rr%n* on I&$#)' 7#n+n* 7&ne&& or

I&$#)' 0n#n'#$ 7&ne&&, n #--(on (o (&I&$#)' 0n#n'#$ 7&ne&&, n #--(on (o (&

$'en&e- 7&ne&&, /rov-e- (#( (e$'en&e- 7&ne&&, /rov-e- (#( (e$'en&e- n&(((on &#$$ 'on&$( (e B#n+$'en&e- n&(((on &#$$ 'on&$( (e B#n+

7e"ore ( '#rre& on I&$#)' 7#n+n*7e"ore ( '#rre& on I&$#)' 7#n+n*

7&ne&& or #n% I&$#)' 0n#n'#$ 7&ne&&.7&ne&& or #n% I&$#)' 0n#n'#$ 7&ne&&.


43/106

6

Se'(on 1262J o" BAFIA &(#(e&Se'(on 1262J o" BAFIA &(#(e&

!2) For the avoidance o doubt' it is declared that a!2) For the avoidance o doubt' it is declared that alicensed institution shall' in res%ect o the *slamiclicensed institution shall' in res%ect o the *slamicbanking business or *slamic fnancial business carried onbanking business or *slamic fnancial business carried onby it' be sub1ect to the %rovisions o this Actby it' be sub1ect to the %rovisions o this Act

Section .. !")!b) states:Section .. !")!b) states:

!") /ce%t as may be %rovided in any regulations made!") /ce%t as may be %rovided in any regulations madeunder sectionunder section 116(2)116(2)' no licensed institution shall' no licensed institution shallac3uire or hold4ac3uire or hold4

(a)(a) 6 or6 or

(b)(b) any immovable %ro%erty or any right or interestany immovable %ro%erty or any right or interest

therein' ece%t such as may be reasonably necessary ortherein' ece%t such as may be reasonably necessary orthe %ur%ose o conducting its business' or o %rovidingthe %ur%ose o conducting its business' or o %rovidinghousing or other amenities or its sta0' and as may inhousing or other amenities or its sta0' and as may ineither case be a%%roved by the +ankeither case be a%%roved by the +ank


44/106

66

Sectin /1: ,:0Sectin /1: ,:0An% L'en&e- n&(((on '#rr%n*An% L'en&e- n&(((on '#rr%n*

on I&$#)' 7#n+n* 7&ne&& oron I&$#)' 7#n+n* 7&ne&& or

I&$#)' Fn#n'#$ 7&ne&&, &#$$I&$#)' Fn#n'#$ 7&ne&&, &#$$

'o)/$% !( #n% !r((en -re'(on&'o)/$% !( #n% !r((en -re'(on&re$#(n* (o (e I&$#)' 7#n+n*re$#(n* (o (e I&$#)' 7#n+n*

7&ne&& or #n% o(er I&$#)'7&ne&& or #n% o(er I&$#)'

0n#n'#$ 7&ne&&, '#rre- on 7%0n#n'#$ 7&ne&&, '#rre- on 7%

&' $'en&e- n&(((on, &&e-&' $'en&e- n&(((on, &&e-"ro) ()e (o ()e 7% (e 7#n+, n"ro) ()e (o ()e 7% (e 7#n+, n

'on&$(#(on !( (e S%#r#'on&$(#(on !( (e S%#r#

A-v&or% 7o-%.A-v&or% 7o-%.


45/106

68

Cnt+(Cnt+( A S%#r# A-v&or% Bo-% & &e(A S%#r# A-v&or% Bo-% & &e(

/ (o en&re (#( (e 7&ne&& o"/ (o en&re (#( (e 7&ne&& o"

(e 7#n+ -oe& no( 'on(r#vene (e(e 7#n+ -oe& no( 'on(r#vene (e

I&$#)' $#!.I&$#)' $#!.


46/106

Iss!eIss!e

I& IBA !-er (#n I&$#)' 7#n+n* 7&ne&&I& IBA !-er (#n I&$#)' 7#n+n* 7&ne&&

n BAFIAn BAFIA

Ar*)en(Ar*)en(

1J1J BA-#A conned theBA-#A conned the “banking“bankingbusiness”business” into'into'

5i5i 4ecei"ing deposits ,A@*A etc4ecei"ing deposits ,A@*A etc

5ii5ii .aing or collecting che!es.aing or collecting che!es

5iii5iii o pro"ide loan@nanceo pro"ide loan@nance *o= #B nder BA-#A shold also conne itself*o= #B nder BA-#A shold also conne itself

within this framework and not to follow #BA within this framework and not to follow #BA

in its ni"ersalit in its ni"ersalit

6<


47/106

Cnt+(Cnt+(

BAFIA B#n+ '#nno( o!n /ro/er(% e='e/(BAFIA B#n+ '#nno( o!n /ro/er(% e='e/(

"or (e /r/o&e o" 'on-'(n* (& &#$"or (e /r/o&e o" 'on-'(n* (& &#$

7&ne&&7&ne&&

T& 'on(r#r% (o IBA& /rov&on T& 'on(r#r% (o IBA& /rov&on Section .. !")!b) states:Section .. !")!b) states:

!") /ce%t as may be %rovided in any regulations made under!") /ce%t as may be %rovided in any regulations made undersectionsection 116(2)116(2)' no licensed institution shall ac3uire or hold4' no licensed institution shall ac3uire or hold4

(a)(a) 6 or6 or

(b)(b) any immovable %ro%erty or any right or interest therein'any immovable %ro%erty or any right or interest therein'ece%t such as may be reasonably necessary or the %ur%ose oece%t such as may be reasonably necessary or the %ur%ose oconducting its business' or o %roviding housing or otherconducting its business' or o %roviding housing or otheramenities or its sta0' and as may in either case be a%%rovedamenities or its sta0' and as may in either case be a%%rovedby the +ankby the +ank

6?


48/106

Im"#tant *#3isinsIm"#tant *#3isins

1%5 the instittion shall not be1%5 the instittion shall not be

deemed an #slamic bank deemed an #slamic bank

1%56 BA-#A shall not appl to1%56 BA-#A shall not appl to

#slamic bank #slamic bank 1%57 related terms1%57 related terms

5a5a *A, refers to *A, of B$*A, refers to *A, of B$

5b5b #slamic banking bsiness same with #BA #slamic banking bsiness same with #BA

5c5c #slamic nancial bsiness an nancial#slamic nancial bsiness an nancialbsiness which the aims & operations do notbsiness which the aims & operations do not

in"ol"e an element against *hariahin"ol"e an element against *hariah

6>


49/106

6:

Development FinancialDevelopment Financial

Institutions Act Institutions Act C#(er& "or 0n#n'#$ n(er)e-#re&C#(er& "or 0n#n'#$ n(er)e-#re&

&' #& B#n+ R#+%#( e('&' #& B#n+ R#+%#( e('

P( &' n&(((on& n-er /rve!P( &' n&(((on& n-er /rve!

o" B#n+ Ne*#r# n re&/e'( o" 0n#n'#$o" B#n+ Ne*#r# n re&/e'( o" 0n#n'#$

(r#n'(on&(r#n'(on&

A$$o!& I&$#)' 7#n+n* /o$'e& o"A$$o!& I&$#)' 7#n+n* /o$'e& o"

B#n+ Ne*#r# (o n'$-e &'B#n+ Ne*#r# (o n'$-e &'n&(((on&n&(((on&

4?+?:A *A;?*4?+?:A *A;?*


50/106

4?+?:A *A;?*4?+?:A *A;?*

/ #B-/ #B-

4eal .ropert ains a> Act4eal .ropert ains a> Act

19761976

*tamp Act 199*tamp Act 199

o"ernment #n"estment Acto"ernment #n"estment Act

19831983 akafl Act 1983akafl Act 1983


51/106

STAMP ACT 1949 (AMD 1989)STAMP ACT 1949 (AMD 1989)

+iabilit of banking+iabilit of banking

instrments to stamp dt instrments to stamp dt

1989 amendment to sec 1A 1989 amendment to sec 1A

to a"oid doble stamp dt forto a"oid doble stamp dt for

#slamic nancing docments#slamic nancing docments

?!al treatment for #slamic?!al treatment for #slamic

nancial docments in terms ofnancial docments in terms ofstamp dt stamp dt


52/106

*ec *tamp Act*ec *tamp Act

#nstrment chargeable with dt #nstrment chargeable with dt

-irst *chedle on stamp dt-irst *chedle on stamp dt

.rinciple docment based on.rinciple docment based onthe schedle 5the schedle 5ad volaremad volarem

*bsidiar docments 4$10*bsidiar docments 4$10

.arties to determine which is.arties to determine which isprinciple docs & which isprinciple docs & which is

sbsidiar docssbsidiar docs


53/106

*ec 1A*ec 1A

.rincipal secrities in sariah.rincipal secrities in sariah

nancingnancing

““Where it is shown that a principal orWhere it is shown that a principal or

primary security secures the repaymentprimary security secures the repaymentof moneys provided under a scheme ofof moneys provided under a scheme of

nancing made according to the syariah, nancing made according to the syariah,

duty chargeable thereon shall beduty chargeable thereon shall be

calculated on thecalculated on the principal amountprincipal amountprovided by the nancier or nancingprovided by the nancier or nancing

body bod y ””


54/106

-ees for #B docs-ees for #B docs

*tamp (t 5?>emption 5oC /rder 198*tamp (t 5?>emption 5oC /rder 1985eecti"e 15eecti"e 1stst /ct 1983/ct 1983 All instrments for prchase of propert nder All instrments for prchase of propert nder

$rabahah & BBA is sbect to e>emption of$rabahah & BBA is sbect to e>emption of

stamp dt stamp dt ..A 5.ropert .rchase Agreement..A 5.ropert .rchase Agreement

bank prchase propert from cstomer bank prchase propert from cstomer ?>empted stamp dt sbsidiar doc?>empted stamp dt sbsidiar doc

.*A 5.ropert *ale Agreement.*A 5.ropert *ale Agreement bank sells the propert to cstomer at cost pls protbank sells the propert to cstomer at cost pls prot

marginmargin Ad valorem Ad valorem stamp dtstamp dt on principal amont@priceon principal amont@price / total selling price 5cost pls prot/ total selling price 5cost pls prot


55/106

-rther e>emptions-rther e>emptions

*tamp (t 5?>emption5oC%/rder*tamp (t 5?>emption5oC%/rder%00 5.;5A 19@%00%00 5.;5A 19@%00 ?>emption for Asset *ale Agreement or Asset?>emption for Asset *ale Agreement or Asset

+ease Agreement+ease Agreement

*tamp (t 5?>emption5oC3/rder*tamp (t 5?>emption5oC3/rder%00 5.;5A %0@%00%00 5.;5A %0@%00 (ocs related to prchase of propert b(ocs related to prchase of propert b

nancier for prpose of leasing back tonancier for prpose of leasing back tocstomer cstomer

*tamp (t 54emission /rder %00*tamp (t 54emission /rder %005.;5A %%@%005.;5A %%@%00 Asset +ease Agreement for prpose of Asset +ease Agreement for prpose of

reschedling or restrctringreschedling or restrctring


56/106

REAL PROPERTY GAINS TAX 1979REAL PROPERTY GAINS TAX 1979

4.A pro"ides for imposition=4.A pro"ides for imposition=

assessment & collection of ta> onassessment & collection of ta> on

gains@prots deri"ed from disposal orgains@prots deri"ed from disposal or

ac!isition of real propert@shares inac!isition of real propert@shares in

real propert companiesreal propert companies *ince BBA & mrabahah in"ol"e*ince BBA & mrabahah in"ol"e

prchase & sale between bank &prchase & sale between bank &

cstomer 5legall the transactioncstomer 5legall the transaction

amonts to ac!isition & disposalamonts to ac!isition & disposal 198 ' amendment to sec 3 a"oid198 ' amendment to sec 3 a"oid

doble ta>ation on #B- transactionsdoble ta>ation on #B- transactions


57/106

a> is based on the price at thea> is based on the price at the

time of disposal and@ortime of disposal and@or

ac!isitionac!isition

-or $rabahah or BBA price at-or $rabahah or BBA price at

the time@date of agreement 5..Athe time@date of agreement 5..A

& .*A& .*A


58/106

TAKAFUL ACT 1983TAKAFUL ACT 1983

4eglates takafl companies= brokers4eglates takafl companies= brokers

& adsters& adsters

4e!ires registration of takafl4e!ires registration of takafl

companies with B$ in relation tocompanies with B$ in relation totheir takafl bsiness 'their takafl bsiness '

-amil takafl bsiness 5+ife insrance-amil takafl bsiness 5+ife insrance

eneral takafl bsiness 5eneraleneral takafl bsiness 5eneral

insranceinsrance 4e!ires the *A, to be set p to4e!ires the *A, to be set p to

ad"ise the compan on *hariah law &ad"ise the compan on *hariah law &

principles in its operationsprinciples in its operations


59/106

4eglates the condct of bsiness '4eglates the condct of bsiness '

o establish & maintain separateo establish & maintain separate

takafl fnds 5famil & generaltakafl fnds 5famil & general

bsiness and shareholders fndbsiness and shareholders fnd #n"estment of takafl mst be#n"estment of takafl mst be

shariah compliantshariah compliant

4e)takafl 5reinsrance matters4e)takafl 5reinsrance matters

.rodct reglation matters.rodct reglation matters


60/106


61/106


62/106

::(( &'e-$e, P#r# II &(#(e $&(J&'e-$e, P#r# II &(#(e $&(J A)on* o(er&A)on* o(er&

3 A-)n&(r#(on& o" I&$#)' $#!, .e (e3 A-)n&(r#(on& o" I&$#)' $#!, .e (eS#r# )#((er&S#r# )#((er&

3 B( r&-'(on& #re on$% on /er&on#$3 B( r&-'(on& #re on$% on /er&on#$)#((er&.)#((er&.

3 On$% on /er&on& /ro"e&&n* (e re$*on o"3 On$% on /er&on& /ro"e&&n* (e re$*on o"I&$#)I&$#)

IBF )#((er& "#$$ o(&-e (& #)7( 7e'#&eIBF )#((er& "#$$ o(&-e (& #)7( 7e'#&e(e% #re 'on&-ere- (o 7e non3/er&on#$(e% #re 'on&-ere- (o 7e non3/er&on#$)#((er& #n- 7#n+n* #n- 0n#n'#$&)#((er& #n- 7#n+n* #n- 0n#n'#$&n&(((on& #re ne(r#$ re$*on3"reeJn&(((on& #re ne(r#$ re$*on3"reeJ


63/106

A$$ )#((er& 'on"erre- 7% "e-er#$ 5 &(#(e $#!,A$$ )#((er& 'on"erre- 7% "e-er#$ 5 &(#(e $#!,

e='e/( "or /er&on#$ $#! o" M&$)e='e/( "or /er&on#$ $#! o" M&$)+ist # 5-ederal +ist of 9+ist # 5-ederal +ist of 9thth *chedle*chedle

,i"il & criminal procedres,i"il & criminal procedres Administration of stice Administration of stice

,ontracts & mercantile laws,ontracts & mercantile laws

Arbitration Arbitration

?tc?tc

)) ob"iosl incldeob"iosl inclde banking &banking &nancenance


64/106


65/106

Dhat are the risdiction of Dhat are the risdiction of

*hariah ,ortsE*hariah ,ortsE

.ara # of +ist ## 5*tate +ist of 9.ara # of +ist ## 5*tate +ist of 9 thth *chedle*chedle

/rganisation & procedre of *hariah/rganisation & procedre of *hariah

,orts,orts

#slamic law#slamic law incldes di"orce= wakaf=incldes di"orce= wakaf=

.ersonal law.ersonal law sccession= oences againstsccession= oences against

-amil law-amil law religion of #slamreligion of #slam

o risdiction o"er criminal matterso risdiction o"er criminal matters

Frisdiction onl o"er persons professing #slam Frisdiction onl o"er persons professing #slam


66/106

Ju!"#!$%!&' &' IBFJu!"#!$%!&' &' IBF

- lies in the ,i"il ,ortlies in the ,i"il ,ort

- becase of the following reasons'becase of the following reasons' #B- comes nder contract B- comes nder contract &

mercantile matters pro"ided in -ederalmercantile matters pro"ided in -ederal+ist 5+ist # of 9+ist 5+ist # of 9thth *chedle*chedle

#slamic law 5as pro"ided in .ara #= +ist#slamic law 5as pro"ided in .ara #= +ist

## of 9## of 9thth *chedle is limited onl to*chedle is limited onl to

persons professing religion of #slampersons professing religion of #slam ths e>clde other persons & Glegalths e>clde other persons & Glegal

personsH sch as banks & nancialpersonsH sch as banks & nancial

instittionsinstittions


67/106

-rthermore the legislation of #B--rthermore the legislation of #B-are all federal legislationsare all federal legislations

his has been shown clearl inhis has been shown clearl in

some #slamic banking casessome #slamic banking cases

o state legislation on #B- 5Eo state legislation on #B- 5E

$assasah adaian #slam$assasah adaian #slam

renggan 1991renggan 1991 which confers risdiction on which confers risdiction on

*hariah ,ort*hariah ,ort


68/106

C"*" &' IBFC"*" &' IBF

Bank Islam Malaysia Berhad v Adnan bin Omar Bank Islam Malaysia Berhad v Adnan bin Omar I199JI199J

3 ,+F 733 ,+F 73

Dato Hj ik Mahmud bin Daud v BIMB Dato Hj ik Mahmud bin Daud v BIMB I1996J 1 ,+FI1996J 1 ,+F

76 5Kigh ,ort< I1998J 3 $+F 396 5*preme ,ort76 5Kigh ,ort< I1998J 3 $+F 396 5*preme ,ort !inta "ress v Bank Islam Malaysia Berhad!inta "ress v Bank Islam Malaysia Berhad I1986J 1I1986J 1

$+F 7$+F 7

Bank 2erasama 4akat 5$ Bhd " ?mcee ,orp I%003JBank 2erasama 4akat 5$ Bhd " ?mcee ,orp I%003J

1 ,+F 6%1 ,+F 6%

ahan *teel " B#$B I%006J 6 ,+F %ahan *teel " B#$B I%006J 6 ,+F %

Ain Bank Bhd " LlkiMi Abdllah I%006J 1 ,+F 38 Ain Bank Bhd " LlkiMi Abdllah I%006J 1 ,+F 38


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Cnt+(Cnt+(

Malayan Banking Berhad v MarilynMalayan Banking Berhad v Marilyn

Ho Siok LinHo Siok Lin 2;;


70/106

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e=%>e=%>

Bank Kerjasama Rakyat Malaysia v EmceeBank Kerjasama Rakyat Malaysia v EmceeCorporationCorporation $%' *L+ ,%- *"A.$%' *L+ ,%- *"A.

/0/0..the facility is an slamic facility! b"t thatthe facilit y is an slamic facility! b"t that#oes not mean that the la$ applicable in this#oes not mean that the la$ applicable in thisapplication is #i%erent from the la$ that isapplication is #i%erent from the la$ that is

applicable if the facility $ere &iven "n#erapplicable if the facility $ere &iven "n#erconventional bankin&'conventional bankin&' 1he charge is a charge1he charge is a chargeunder the national Land *ode (2L*). 1he remedyunder the national Land *ode (2L*). 1he remedyavailable and sought is a remedy !rovided by theavailable and sought is a remedy !rovided by the2L*. 1he !rocedure is !rovided by the *ode and2L*. 1he !rocedure is !rovided by the *ode andthe 3ules o4 the High *ourt 56. 1he courtthe 3ules o4 the High *ourt 56. 1he courtad#udicating it is the High *ourt. So it is the samead#udicating it is the High *ourt. So it is the samela7 that is a!!licable the same order that 7ouldla7 that is a!!licable the same order that 7ouldbe i4 made and the same !rinci!les that should bebe i4 made and the same !rinci!les that should bea!!lied in deciding the a!!lication8.a!!lied in deciding the a!!lication8.


71/106

?1

Lcal Cases=Lcal Cases=DA#78 9 ;*< =A9=>D DA>D ?DA#78 9 ;*< =A9=>D DA>D ?

+A;< *S@A= =A@AS*A +9D+A;< *S@A= =A@AS*A +9D

Te #//e$$#n(, !o !#& (e /$#n( n (e Te #//e$$#n(, !o !#& (e /$#n( n (e'or( 7e$o!, #- #//$e- "or #n or-er (#('or( 7e$o!, #- #//$e- "or #n or-er (#(

(e '#r*e& e=e'(e- 7% & #((orne% n(e '#r*e& e=e'(e- 7% & #((orne% n

"#vor o" (e -e"en-#n( n re&/e'( o""#vor o" (e -e"en-#n( n re&/e'( o"

(!en(% 0ve $o(& o" $#n- #$$ n Se'(on 12,(!en(% 0ve $o(& o" $#n- #$$ n Se'(on 12,

Ko(# B#r, Ke$#n(#n eren#"(er V(eKo(# B#r, Ke$#n(#n eren#"(er V(e/ro/er(e&VJ 7e -e'$#re- n$$ #n- vo- #n-/ro/er(e&VJ 7e -e'$#re- n$$ #n- vo- #n-

o" no ee'( #n- (#( (e )e)or#n-) o"o" no ee'( #n- (#( (e )e)or#n-) o"

'#r*e re*&(ere- 7e '#n'e$$e-.'#r*e re*&(ere- 7e '#n'e$$e-.

C t+(Cnt+(


72/106

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/r#%er&, (e re&/on-en( 7e or-ere- (o re(rn (e(($e& o" (e /ro/er(e&, "ree o" #$$ en')7r#n'e&,(o ).

C$#)e- -o')en(& #)on(e- (o # 'o$or#7$ee=er'&e (o -e"e#( (e ver% /r/o&e #n- n(en(ono" (e M#$#% Re&erv#(on& En#'()en( 1:; o"Ke$#n(#n

UKUK cases


73/106

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UK casesUK cases

hamil Bank of Bahrain EC vhamil Bank of Bahrain EC v

Beimco *harmace"ticals +t# ,Beimco *harmace"ticals +t# ,

orsors 2;;6 A$$ ER 1;?2, COA2;;6 A$$ ER 1;?2, COA

En*$#n-En*$#n- S%)/on% 9e)& '#&e.S%)/on% 9e)& '#&e.3 Bo( '#&e& -e#$ !( (e 'on&(r'(on o"Bo( '#&e& -e#$ !( (e 'on&(r'(on o"

I&$#)' (r#n'(on& n En*$& 'or(.I&$#)' (r#n'(on& n En*$& 'or(.3 He$- (o 7e 'on&(re- #& #n En*$& $#!He$- (o 7e 'on&(re- #& #n En*$& $#!

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74/106

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S%)/on% 9e)& N@ 5 O(er 2;;2S%)/on% 9e)& N@ 5 O(er 2;;2EWHC 1EWHC 1 On #r*)en(& e=/er( ev-en'e no( #On #r*)en(& e=/er( ev-en'e no( #

Mr#7## #n- $4-#(e- -#)#*e& no(Mr#7## #n- $4-#(e- -#)#*e& no(

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75/106

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an&hi *olyesters +t# (n#ia) v' -hean&hi *olyesters +t# (n#ia) v' -henternational nvestor (KC.C)nternational nvestor (KC.C) 2;;;2;;;

L$o%-& Re/ 6>; BD En*$#n-.L$o%-& Re/ 6>; BD En*$#n-.

3 I&(&n# 'on(r#'( /rov-e- (#( #n% -&/(e3 I&(&n# 'on(r#'( /rov-e- (#( #n% -&/(e&#$$ 7e *overne- 7% (e $#!& o" En*$#n-&#$$ 7e *overne- 7% (e $#!& o" En*$#n-

e='e/( (o (e e=(en( ( )#% 'onG'( !(e='e/( (o (e e=(en( ( )#% 'onG'( !(

(e I&$#)' S#r# !' &#$$ /rev#$.(e I&$#)' S#r# !' &#$$ /rev#$.

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A((#ess e?"#essly t)seA((#ess e?"#essly t)se


76/106

?<

A((#ess e?"#essly t)se A((#ess e?"#essly t)se

ass!me( as im"lie(ass!me( as im"lie( S)amil Ban$ & Ba)#ain 3= Be?imc *)a#mace!ticals Lt( >S)amil Ban$ & Ba)#ain 3= Be?imc *)a#mace!ticals Lt( >““Subject to theSubject to theprinciples of the Glorious Sharia'a, this agreement shall be governed by andprinciples of the Glorious Sharia'a, this agreement shall be governed by andconstrued in accordance with the laws of England."construed in accordance with the laws of England."

*OTTER L< sai( t)at ne "#inci"le e?"#essly state( in t)e @!#an 'as t)at t)e c)a#%in% & inte#est*OTTER L< sai( t)at ne "#inci"le e?"#essly state( in t)e @!#an 'as t)at t)e c)a#%in% & inte#est!"n a lan 'as Ri4a an( 'as cnt#a#y t t)e S)a#ia= T)e 4an$s claims a%ainst t)e &i#st an(!"n a lan 'as Ri4a an( 'as cnt#a#y t t)e S)a#ia= T)e 4an$s claims a%ainst t)e &i#st an(secn( (e&en(ants 'e#e ma(e !n(e# t' M#a4a)a a%#eements sale cnt#acts #ec%nise( assecn( (e&en(ants 'e#e ma(e !n(e# t' M#a4a)a a%#eements sale cnt#acts #ec%nise( as

3ali( 4y Islamic la' an( a%ainst t)e t)i#(6 &!#t) an( &i&t) (e&en(ants as %!a#ant#s= T)e "#inci"le3ali( 4y Islamic la' an( a%ainst t)e t)i#(6 &!#t) an( &i&t) (e&en(ants as %!a#ant#s= T)e "#inci"le(e&ence a(3ance( 'as t)at t)e a%#eements am!nte( t !nla'&!l a%#eements t "ay Ri4a an((e&ence a(3ance( 'as t)at t)e a%#eements am!nte( t !nla'&!l a%#eements t "ay Ri4a an('e#e t)!s 3i( an(# !nen&#cea4le=T)e tas$ & cnst#!ctin 'as t asce#tain t)e "#es!me('e#e t)!s 3i( an(# !nen&#cea4le=T)e tas$ & cnst#!ctin 'as t asce#tain t)e "#es!me(intentin & t)e "a#ties= T)e "#3is s!4;ect t t)e "#inci"le & t)e Gl#i!s S)a#iaa s)!l( 4eintentin & t)e "a#ties= T)e "#3is s!4;ect t t)e "#inci"le & t)e Gl#i!s S)a#iaa s)!l( 4ea""#ac)e( n a 4asis ')ic) 'as #ecncila4le 'it) t)e "!#"se e3i(ent m t)e '#(s ')ic)a""#ac)e( n a 4asis ')ic) 'as #ecncila4le 'it) t)e "!#"se e3i(ent m t)e '#(s ')ic)&ll'e(6 #at)e# t)an "e#atin% t (e&eat s!c) "!#"se= M# ac$e# cnce(e( t)at t)e#e c!l( nt&ll'e(6 #at)e# t)an "e#atin% t (e&eat s!c) "!#"se= M# ac$e# cnce(e( t)at t)e#e c!l( nt4e t' %3e#nin% la's an( t)at t)e %3e#nin% la' 'as t)at & En%lan(= e a#%!e( t)at t)e cla!se4e t' %3e#nin% la's an( t)at t)e %3e#nin% la' 'as t)at & En%lan(= e a#%!e( t)at t)e cla!ses)!l( 4e #ea( as inc#"#atin% sim"ly t)se s"eci&ic #!les & S)a#ia ')ic) #elate( t inte#est an(s)!l( 4e #ea( as inc#"#atin% sim"ly t)se s"eci&ic #!les & S)a#ia ')ic) #elate( t inte#est an(t t)e nat!#e & M#a4a)a cnt#acts= T)e (ct#ine & inc#"#atin c!l( nly sensi4ly "e#atet t)e nat!#e & M#a4a)a cnt#acts= T)e (ct#ine & inc#"#atin c!l( nly sensi4ly "e#ate

')e#e t)e "a#ties )a( 4y t)e te#ms & t)ei# cnt#act s!&&iciently i(enti&ie( s"eci&ic 4lac$ lette#')e#e t)e "a#ties )a( 4y t)e te#ms & t)ei# cnt#act s!&&iciently i(enti&ie( s"eci&ic 4lac$ lette#"#3isins & a &#ei%n la' # an inte#natinal c(e # set & #!les a"t t 4e inc#"#ate( italics as"#3isins & a &#ei%n la' # an inte#natinal c(e # set & #!les a"t t 4e inc#"#ate( italics aste#ms & t)e #ele3ant cnt#act italic s!c) as a "a#tic!la# a#ticle # a#ticles & t)e F#enc) Ci3il C(ete#ms & t)e #ele3ant cnt#act italic s!c) as a "a#tic!la# a#ticle # a#ticles & t)e F#enc) Ci3il C(e# t)e a%!e R!les= By t)at met)(6 En%lis) la' 'as a""lie( as t)e %3e#nin% la' t a cnt#act# t)e a%!e R!les= By t)at met)(6 En%lis) la' 'as a""lie( as t)e %3e#nin% la' t a cnt#actint ')ic) t)e &#ei%n #!les )a( 4een inc#"#ate(=int ')ic) t)e &#ei%n #!les )a( 4een inc#"#ate(=


77/106

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A(3anta%es A(3anta%es

A-v#n(#*e Te 'v$ 'or(& &%&(e) 5A-v#n(#*e Te 'v$ 'or(& &%&(e) 5

'v$ $#! -*e& #re )ore &%&(e)#(''v$ $#! -*e& #re )ore &%&(e)#('

5 e&(#7$&e-5 e&(#7$&e-

Te -*e& #re )ore $e#rne- !( Te -*e& #re )ore $e#rne- !(re*#r- (o 'o))er'#$ #n- 7#n+n*re*#r- (o 'o))er'#$ #n- 7#n+n*

$#!$#!


78/106

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Disa(3anta%esDisa(3anta%es

Te 'or( )#% "#$ (o #//re'#(e (e /e'$#r(% Te 'or( )#% "#$ (o #//re'#(e (e /e'$#r(%o" I&$#)' 'on(r#'(o" I&$#)' 'on(r#'(

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E.* #no)#$o& -e'&on& n (er)& o" S#r#E.* #no)#$o& -e'&on& n (er)& o" S#r#/rn'/$e& #n- r$e& -e&/(e (e e4(#7$e/rn'/$e& #n- r$e& -e&/(e (e e4(#7$e

re)e-e& )#% #ve 7een &erve- (o (e /#r(e&re)e-e& )#% #ve 7een &erve- (o (e /#r(e&

E.*E.* Dato Hj ik Mahmud bin Daud v Dato Hj ik Mahmud bin Daud v

BIMB BIMB II S#r# $#! !o$- no( 7e 'on&-ere- Q no( #S#r# $#! !o$- no( 7e 'on&-ere- Q no( #

$#! o" #n% 'on(r%$#! o" #n% 'on(r%


79/106

?:

E?am"leE?am"le

DA#78 9 ;*< =A9=>D DA>D ?DA#78 9 ;*< =A9=>D DA>D ?

+A;< *S@A= =A@AS*A +9D+A;< *S@A= =A@AS*A +9D

Te #//e$$#n(, !o !#& (e /$#n( n (e Te #//e$$#n(, !o !#& (e /$#n( n (e'or( 7e$o!, #- #//$e- "or #n or-er (#('or( 7e$o!, #- #//$e- "or #n or-er (#(

(e '#r*e& e=e'(e- 7% & #((orne% n(e '#r*e& e=e'(e- 7% & #((orne% n

"#vor o" (e -e"en-#n( n re&/e'( o""#vor o" (e -e"en-#n( n re&/e'( o"

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Ko(# B#r, Ke$#n(#n eren#"(er V(eKo(# B#r, Ke$#n(#n eren#"(er V(e/ro/er(e&VJ 7e -e'$#re- n$$ #n- vo- #n-/ro/er(e&VJ 7e -e'$#re- n$$ #n- vo- #n-

o" no ee'( #n- (#( (e )e)or#n-) o"o" no ee'( #n- (#( (e )e)or#n-) o"

'#r*e re*&(ere- 7e '#n'e$$e-.'#r*e re*&(ere- 7e '#n'e$$e-.

Cnt+(Cnt+(


80/106

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Cnt (Cnt (

He #- #$&o #//$e- "or #n or-er (#( (ePro/er(% S#$e A*ree)en( #n- (e Pro/er(%Pr'#&e A*ree)en( e=e'(e- 7% (e /#r(e&-#(e- < M#% 1:>6 7e -e'$#re- n$$ #n- vo- #n-o" no ee'( #n- (#( 'on&e4en( (o 7o( (e&e

/r#%er&, (e re&/on-en( 7e or-ere- (o re(rn (e(($e& o" (e /ro/er(e&, "ree o" #$$ en')7r#n'e&,(o ).

C$#)e- -o')en(& #)on(e- (o # 'o$or#7$ee=er'&e (o -e"e#( (e ver% /r/o&e #n- n(en(ono" (e M#$#% Re&erv#(on& En#'()en( 1:; o"Ke$#n(#n

(


81/106

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' t #eme(y' t #eme(y

S#r# 'or( &o$- #--'#(e (eS#r# 'or( &o$- #--'#(e (e'#&e& o" IBF Are (e 'or(& re#-%'#&e& o" IBF Are (e 'or(& re#-%

A//on(n* Cv$ L#! -*e& (o (eA//on(n* Cv$ L#! -*e& (o (e

S#r# Cor(& I& (e $e*#$S#r# Cor(& I& (e $e*#$"r#)e!or+ &'en("r#)e!or+ &'en(

W#( " (e /#r(e& #re non3M&$)W#( " (e /#r(e& #re non3M&$)

Ho! (o e#r (e '#&e&Ho! (o e#r (e '#&e&

C t+(


82/106

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E&(#7$&)en( o" M#)#$#( Cor( D#*#n*E&(#7$&)en( o" M#)#$#( Cor( D#*#n*6, KL H* Cor(J 'rren($% e#-e- 7%6, KL H* Cor(J 'rren($% e#-e- 7%D#(o A7-$ W##7 P#(#$ Pr#'('#$D#(o A7-$ W##7 P#(#$ Pr#'('#$Dre'(onno12;;JDre'(onno12;;J

C#n (& &o$ve (e /ro7$e) #n- /rov-eC#n (& &o$ve (e /ro7$e) #n- /rov-e&o)e $eve$ o" #&&r#n'e (#( (#( (e&o)e $eve$ o" #&&r#n'e (#( (#( (e -*)en( !$$ 7e )#-e n #''or-#n'e !( -*)en( !$$ 7e )#-e n #''or-#n'e !((e S#r# /rn'/$e(e S#r# /rn'/$e

W#( #7o( (e re'en( '#&e&W#( #7o( (e re'en( '#&e& Ain Bank Bhd " LlkiMi Abdllah I%006J Ain Bank Bhd " LlkiMi Abdllah I%006J

1 ,+F 381 ,+F 38

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83/106

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A#4it#atin A#4it#atin

Re#$&n* (#( n &o)e -*)en(, (e -e'&on& !ere no(Re#$&n* (#( n &o)e -*)en(, (e -e'&on& !ere no((#( 'on&&(en( !( (e S#r# /rn'/$e& -e&/(e (#((#( 'on&&(en( !( (e S#r# /rn'/$e& -e&/(e (#(e4(#7$e re)e-e& !#& *ven (o (e /#r(e&J, &o)e 4#r(ere4(#7$e re)e-e& !#& *ven (o (e /#r(e&J, &o)e 4#r(er#ve &**e&(e- (#( o(er )o-e o" -&/(e re&o$(on&,#ve &**e&(e- (#( o(er )o-e o" -&/(e re&o$(on&,e&/e'#$$% #r7(r#(on & &e- n re&o$vn* 'o))er'#$ '#&e&.e&/e'#$$% #r7(r#(on & &e- n re&o$vn* 'o))er'#$ '#&e&.

Even 7% &o)e, ( & 'on&-ere- (o 7e # 7e((er #$(ern#(ve (oEven 7% &o)e, ( & 'on&-ere- (o 7e # 7e((er #$(ern#(ve (o

(e nor)#$ $(*#(on /ro'e&& v# 'or( -e'&onJ.(e nor)#$ $(*#(on /ro'e&& v# 'or( -e'&onJ. Even (o* #r7(r#(on & 'on&-ere- (o 7e o" (e /reEven (o* #r7(r#(on & 'on&-ere- (o 7e o" (e /re

I&$#)' er# or*n, (& /r#'('e !#& en-or&e- 7% (e Pro/e(I&$#)' er# or*n, (& /r#'('e !#& en-or&e- 7% (e Pro/e(#n- #& &' & -ee/3roo(e- n I&$#)' (r#-(on& #n- '$(re#n- #& &' & -ee/3roo(e- n I&$#)' (r#-(on& #n- '$(re

@#ro& ver&e& #n- (r#-(on& o" (e Pro/e( /ro/#*#(e@#ro& ver&e& #n- (r#-(on& o" (e Pro/e( /ro/#*#(e-&/(e re&o$(on v# #r7(r#(on /ro'e&& r#(er (en 'or(-&/(e re&o$(on v# #r7(r#(on /ro'e&& r#(er (en 'or(

/ro'ee-n*/ro'ee-n* In "#'(, n I&$#)' $#!, )e-#(on #n- #r7(r#(on #reIn "#'(, n I&$#)' $#!, )e-#(on #n- #r7(r#(on #re

'on&-ere- 7e((er )e#n& "or -&/(e re&o$(on&, (#n (e'on&-ere- 7e((er )e#n& "or -&/(e re&o$(on&, (#n (e(r#-(on#$ -'#$ $(*#(on, /#r('$#r$% "or 'o))er'#$(r#-(on#$ -'#$ $(*#(on, /#r('$#r$% "or 'o))er'#$-&/(e&-&/(e&

D &i i iD &i iti


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De&initinDe&initin

Ar7(r#(on & # /ro'e-re n !' #Ar7(r#(on & # /ro'e-re n !' #-&/(e & &7)((e-, 7% #*ree)en(-&/(e & &7)((e-, 7% #*ree)en(

o" (e /#r(e&, (o one or )oreo" (e /#r(e&, (o one or )ore

#r7(r#(or& !o )#+e # 7n-n*#r7(r#(or& !o )#+e # 7n-n*-e'&on on (e -&/(e.-e'&on on (e -&/(e.

In 'oo&n* #r7(r#(on, (e /#r(e&In 'oo&n* #r7(r#(on, (e /#r(e&

o/( "or # /rv#(e -&/(e re&o$(ono/( "or # /rv#(e -&/(e re&o$(on/ro'e-re n&(e#- o" *on* (o 'or(./ro'e-re n&(e#- o" *on* (o 'or(.

* i i l C) t i ti* i i l C) t i ti


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>8

*#inci"al C)a#acte#istics*#inci"al C)a#acte#istics

Arbitration is consensual Arbitration is consensual 1he !arties choose the arbitrator(s)1he !arties choose the arbitrator(s)

Arbitration is neutral Arbitration is neutral

Arbitration is a con9dential Arbitration is a con9dential

!rocedure !rocedure

1he decision o4 the arbitral tribunal is1he decision o4 the arbitral tribunal is9nal and easy to en4orce9nal and easy to en4orce

A(3anta%es (isa(3anta%esA(3anta%es (isa(3anta%es


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A(3anta%es (isa(3anta%es A(3anta%es (isa(3anta%es

& a#4it#atin 3isH3is liti%atin& a#4it#atin 3isH3is liti%atin

L(*#(onL(*#(on Ar7(r#(onAr7(r#(onM$(/$e /ro'ee-n*& n-erM$(/$e /ro'ee-n*& n-er-eren(-eren(

L#!& !( r&+ o" 'onG'(n*L#!& !( r&+ o" 'onG'(n*re&$(&re&$(&

Po&&7$(% o" #'(#$ or /er'eve-Po&&7$(% o" #'(#$ or /er'eve-o)e 'or( #-v#n(#*e o" /#r(%o)e 'or( #-v#n(#*e o" /#r(%(#((#(

$(*#(e& n (& o!n 'on(r%$(*#(e& n (& o!n 'on(r%

A &n*$e /ro'ee-n* n-er (eA &n*$e /ro'ee-n* n-er (e$#!$#!

-e(er)ne- 7% /#r(e&-e(er)ne- 7% /#r(e&

Ar7(r#$ /ro'e-re #n- n#(on#$(%Ar7(r#$ /ro'e-re #n- n#(on#$(%

o" o" #r7(r#(or '#n 7e ne(r#$ (o $#!,#r7(r#(or '#n 7e ne(r#$ (o $#!,

L#n*#*e #n- n&(((on#$ '$(reL#n*#*e #n- n&(((on#$ '$(reo" o"

/#r(e&/#r(e&

De'&on )#+er )*( no( #veDe'&on )#+er )*( no( #vere$ev#n( e=/er(&ere$ev#n( e=/er(&e

P#r(e& '#n &e$e'( #r7(r#(or&JP#r(e& '#n &e$e'( #r7(r#(or&J!( re$ev#n( e=/er(&e!( re$ev#n( e=/er(&e

Pro'e-re& o"(en -r#!n3o(Pro'e-re& o"(en -r#!n3o( Ar7(r#(or&J #n- /#r(e& '#nAr7(r#(or&J #n- /#r(e& '#n

&or(en (e /ro'e-re&or(en (e /ro'e-re

Po&&7$(% o" #//e#$Po&&7$(% o" #//e#$ L)(e- #//e#$ o/(onL)(e- #//e#$ o/(on

P7$' /ro'ee-n*&P7$' /ro'ee-n*& Pro'ee-n*& #n- #!#r- #rePro'ee-n*& #n- #!#r- #re

@ t ti@ t ti


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@!tatin@!tatin

To /r&e # $#!&( & (o *#)7$e on To /r&e # $#!&( & (o *#)7$e onv'(or%. To e$e'( 'on'$#(on & (o &ee+v'(or%. To e$e'( 'on'$#(on & (o &ee+"#rne&&. @'(ore& n-er)ne"#rne&&. @'(ore& n-er)ne

re$#(on&/&. F#rne&& &(ren*(en&re$#(on&/&. F#rne&& &(ren*(en&(e). To&e !o 7$- "or (e $on* (er)(e). To&e !o 7$- "or (e $on* (er)!o$- -o !e$$ (o 'oo&e 'on'$#(on.V!o$- -o !e$$ (o 'oo&e 'on'$#(on.V

E$o( R'#r-&on An A)er'#nE$o( R'#r-&on An A)er'#n&(#(e&)#n #n- $#!%er&(#(e&)#n #n- $#!%er

T)e *#%#essin% E&&#t T'a#(sT)e *#%#essin% E&&#t T'a#(s


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>>

T)e *#%#essin% E&&#t T'a#(sT)e *#%#essin% E&&#t T'a#(s

A#4it#atin in IBF A#4it#atin in IBF To 'o)/$)en( (o $e*#$ n"r#&(r'(re "or IBF, #r7(r#(on To 'o)/$)en( (o $e*#$ n"r#&(r'(re "or IBF, #r7(r#(on

/ro'e-re& )&( 7e e&(#7$&e- #n- &(ren*(ene- #& #n/ro'e-re& )&( 7e e&(#7$&e- #n- &(ren*(ene- #& #n#$(ern#(ve )o-e o" -&/(e re&o$(on.#$(ern#(ve )o-e o" -&/(e re&o$(on.

T& #& 7een e)/#&e- n (e T& #& 7een e)/#&e- n (e Te I&$#)' Fn#n'#$ Te I&$#)' Fn#n'#$Serv'e& In-&(r% TEN3YEAR MASTER PLAN 2;;< QServ'e& In-&(r% TEN3YEAR MASTER PLAN 2;;< Q2;18J, n(#(e- 7% IDB #n- IFSB2;18J, n(#(e- 7% IDB #n- IFSB

T& #& $e- (o (e e&(#7$&)en( o" (e In(ern#(on#$ T& #& $e- (o (e e&(#7$&)en( o" (e In(ern#(on#$I&$#)' Cen(re "or Re'on'$#(on #n- Co))er'#$I&$#)' Cen(re "or Re'on'$#(on #n- Co))er'#$Ar7(r#(on "or I&$#)' Fn#n'e In-&(r%, e#-4#r(ere-Ar7(r#(on "or I&$#)' Fn#n'e In-&(r%, e#-4#r(ere-n D7# 2;;8Jn D7# 2;;8J

Te 'en(re !$$ 7e #n- &e(($e 0n#n'#$ #n- 'o))er'#$ Te 'en(re !$$ 7e #n- &e(($e 0n#n'#$ #n- 'o))er'#$

-&/(e& 7e(!een 0n#n'#$ #n- 'o))er'#$ n&(((on&-&/(e& 7e(!een 0n#n'#$ #n- 'o))er'#$ n&(((on&(#( #ve 'o&en (o 'o)/$% !( (e S#r# (o &e(($e(#( #ve 'o&en (o 'o)/$% !( (e S#r# (o &e(($e-&/(e&. Te /ro)o(er& !ere 9ener#$ Con'$ "or-&/(e&. Te /ro)o(er& !ere 9ener#$ Con'$ "orI&$#)' B#n+& #n- Fn#n'#$ In&(((on& #n- IDBI&$#)' B#n+& #n- Fn#n'#$ In&(((on& #n- IDB

C t+(C t+(


89/106

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Cnt+(Cnt+(

Be&-e& (&, &ever#$ o(er #r7(r#(onBe&-e& (&, &ever#$ o(er #r7(r#(on'en(re& #ve 7een e&(#7$&e- (o'en(re& #ve 7een e&(#7$&e- (o

&erve (e )e /r/o&e&erve (e )e /r/o&e

Ar7(r#(on "or I&$#)' 0n#n'#$Ar7(r#(on "or I&$#)' 0n#n'#$7&ne&& n-er (e #&/'e& o" (e7&ne&& n-er (e #&/'e& o" (e

K#$# L)/r Re*on#$ Cen(re "orK#$# L)/r Re*on#$ Cen(re "or

Ar7(r#(onAr7(r#(on 9CC Co))er'#$ Ar7(r#(on Cen(re9CC Co))er'#$ Ar7(r#(on Cen(re

B#r#nJ.B#r#nJ.

I i A 4it tiI i A 4it ti


90/106

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Iss!es in A#4it#atinIss!es in A#4it#atin

Te -e'&on "or #r7(r#(on )&( 7e #*ree- Te -e'&on "or #r7(r#(on )&( 7e #*ree-7% (e /#r(e&.7% (e /#r(e&.

In 'er(#n 'r')&(#n'e&, (e /#r(% (o (eIn 'er(#n 'r')&(#n'e&, (e /#r(% (o (e

-&/(e )#% 7e re$'(#n( (o /ro'ee- "or-&/(e )#% 7e re$'(#n( (o /ro'ee- "or#r7(r#(on, " e (n+& (#( (e -*)en(#r7(r#(on, " e (n+& (#( (e -*)en(

!$$ 7ene0( ) )ore.!$$ 7ene0( ) )ore.

A& &', " (ere & no '$#&e "or #r7(r#(onA& &', " (ere & no '$#&e "or #r7(r#(on

!#& /rov-e- "or n (e 'on(r#'(, (e!#& /rov-e- "or n (e 'on(r#'(, (e&e(($e)en( 7% !#% o" #r7(r#(on )*( no(&e(($e)en( 7% !#% o" #r7(r#(on )*( no(

7e /o&&7$e.7e /o&&7$e.

C t+(C t+(


91/106

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Cnt+(Cnt+(

To /( #n #r7(r#(on '$#&e n (e #*ree)en( To /( #n #r7(r#(on '$#&e n (e #*ree)en( VAn% -&/(e, 'on(rover&% or '$#) #r&n* o( o"VAn% -&/(e, 'on(rover&% or '$#) #r&n* o( o"

or re$#(n* (o (& 'on(r#'(, or (e 7re#',or re$#(n* (o (& 'on(r#'(, or (e 7re#',(er)n#(on or nv#$-(% (ereo", &#$$ 7e -e'-e-(er)n#(on or nv#$-(% (ereo", &#$$ 7e -e'-e-7% #r7(r#(on n #''or-#n'e !( (e R$e& "or7% #r7(r#(on n #''or-#n'e !( (e R$e& "or

Ar7(r#(on o" (e K#$# L)/r Re*on#$ Cen(reAr7(r#(on o" (e K#$# L)/r Re*on#$ Cen(re"or Ar7(r#(on.V"or Ar7(r#(on.V

Te /#r(e& )#% #*ree on o(er (n*&, $+e Te /#r(e& )#% #*ree on o(er (n*&, $+e

3 A//on(n* #(or(%3 A//on(n* #(or(%

3 no. o" #r7(r#(or&3 no. o" #r7(r#(or&

3 /$#'e o" #r7(r#(on3 /$#'e o" #r7(r#(on

33 $#n*#*e&J (o 7e &e- n (e #r7(r#(on$#n*#*e&J (o 7e &e- n (e #r7(r#(on

33 Te #//$'#7$e $#! (o (e 'on(r#'( Te #//$'#7$e $#! (o (e 'on(r#'(

C t+(C t+(


92/106

:2

Cnt+(Cnt+(

In )o-ern 'o))er'#$ (r#n'(on, (e )/or(#n'e o" #r7(r#(onIn )o-ern 'o))er'#$ (r#n'(on, (e )/or(#n'e o" #r7(r#(on& n-en#7$e& n-en#7$e

T!o +n-& o" #r7(r#(on& -o)e&(' or n(ern#(on#$ T!o +n-& o" #r7(r#(on& -o)e&(' or n(ern#(on#$ W$&( #r7(r#(on n -o)e&(' '#&e& & re$#(ve$% e#&er,W$&( #r7(r#(on n -o)e&(' '#&e& & re$#(ve$% e#&er,

#r7(r#(on re$#(e- (o 'ro&& 7o#r-er (r#n'(on & )ore#r7(r#(on re$#(e- (o 'ro&& 7o#r-er (r#n'(on & )ore'o)/$'#(e-.'o)/$'#(e-.

Even &o)e 'on(re& re"&e- (o re&or( (o n(ern#(on#$Even &o)e 'on(re& re"&e- (o re&or( (o n(ern#(on#$#r7(r#(on. E.*. n n S#- Ar#7##r7(r#(on. E.*. n n S#- Ar#7#Ar7(r#(on Re*$#(on& #n-Ar7(r#(on Re*$#(on& #n-I)/$e)en(#(on R$e&JI)/$e)en(#(on R$e&J, (e -'#$ &%&(e) *ener#$$% #//$e&, (e -'#$ &%&(e) *ener#$$% #//$e&S#- $#! on$%, even " (e /#r(e& #ve 'on&en(e- (o &o)e o(erS#- $#! on$%, even " (e /#r(e& #ve 'on&en(e- (o &o)e o(er$#!, #& &' (& !$$ /( # r-$e "or n(ern#(on#$ '#&e& (o &e$#!, #& &' (& !$$ /( # r-$e "or n(ern#(on#$ '#&e& (o &e#r7(r#(on.#r7(r#(on.

Te Ir#n#n Cv$ Co-e #n- (e E=e'(on o" Cv$ -*)en(& A'( Te Ir#n#n Cv$ Co-e #n- (e E=e'(on o" Cv$ -*)en(& A'(

o" 1:?? n'$-e& &o)e 'on-(on#$ /o&&7$(e& "or (eo" 1:?? n'$-e& &o)e 'on-(on#$ /o&&7$(e& "or (een"or'e)en( o" "ore*n #!#r-&.en"or'e)en( o" "ore*n #!#r-&. Ir#4 $#! -oe& no( en"or'e "ore*n #r7(r#$ #!#r-&, e(er n-erIr#4 $#! -oe& no( en"or'e "ore*n #r7(r#$ #!#r-&, e(er n-er

(e ICC r$e& or "ore*n )n'/#$ $#!&, #$(o* (ere #re &o)e(e ICC r$e& or "ore*n )n'/#$ $#!&, #$(o* (ere #re &o)ee='e/(on&e='e/(on&

C t+(Cnt+(


93/106

:

Cnt+(Cnt+(

In (e )e !#%, E*%/(#n $#!In (e )e !#%, E*%/(#n $#!en"or'e& "ore*n #!#r-& /rov-e-en"or'e& "ore*n #!#r-& /rov-e-

(#( (e% #re no( #*#n&( /7$'(#( (e% #re no( #*#n&( /7$'

/o$'% or )or#$&, or n 'onG'( !(/o$'% or )or#$&, or n 'onG'( !(E*%/(#n -*)en(& or #!#r-&E*%/(#n -*)en(& or #!#r-&

A$$ (e&e r-$e& !$$, o" 'or&eA$$ (e&e r-$e& !$$, o" 'or&e

)/e-e (e #&/r#(on (o!#r-&)/e-e (e #&/r#(on (o!#r-&&e(($e)en( o" '#&e& v# #r7(r#(on&e(($e)en( o" '#&e& v# #r7(r#(on

C t+(Cnt+(


94/106

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Cnt+(Cnt+(

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En"or'e)en( o" Fore*n Ar7(r#$ A!#r-& A'(En"or'e)en( o" Fore*n Ar7(r#$ A!#r-& A'(1:>8 A'( 2;J, "ore*n #r7(r#$ #!#r- !$$ 7e1:>8 A'( 2;J, "ore*n #r7(r#$ #!#r- !$$ 7e"$$% en"or'e- n M#$#%&#."$$% en"or'e- n M#$#%&#.

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95/106

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man Ca"ital ,< (%es 5 La e#s0!man Ca"ital ,


96/106

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!man Ca"ital ,cnt+(0!man Ca"ital ,cnt+(0


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!man Ca"ital ,cnt+(0!man Ca"ital ,cnt (0

B#n+er&B#n+er&

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