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Malaysia courts may get expert help on sharia finance

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Points of Essence:

  • Malaysian courts are urged to seek guidance from the central bank’s Shariah advisors when deciding cases on Islamic finance. There is a fear that as non-Shariah trained judges, decisions may be reached without giving precedence to the Islamic principles.

KUALA LUMPUR, Oct 29 (Reuters) – Malaysian courts may need to refer to the central bank’s sharia advisers when deciding Islamic finance matters to ensure cases are handled by sharia experts, a newspaper reported on Wednesday.

Islamic banking matters are heard by Malaysian civil courts which are staffed by judges who are not formally trained in the sharia. This has led to criticism that some sharia finance cases may not be decided according to Islamic principles.

‘It is learnt that the central bank is reviewing the necessary laws to make this possible,’ The Malaysian Reserve said, without citing the source of its information.

There was no immediate comment from the central bank.

The central bank has a board of sharia advisers which gives directions on Islamic finance matters regulated by the central bank such as banking and insurance.

The board consists of sharia scholars, jurists and industry practitioners.

Sharia-compliant finance bans the receipt of interest and investments in companies dealing in alcohol, gambling and pornography

(Reporting by Liau Y-Sing; Editing by Kim Coghill)

Source: http://www.forbes.com

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Written by Suapi Shaffaii

October 29, 2008 at 3:50 pm

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