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Philosophy and Fundamentals of Sharī’ah for Islamic Finance
SHA0011

Diagram 15 : Islamic Financial Regulators in Malaysia
The Shariah Advisory Council (SAC) is the highest authority of Sharī’ah
controls functions for IFIs. In order to enforce Sharī’ah in Islamic finance,
BNM and SC have adopted a two-tier Sharī’ah governance infrastructure
comprising two vital components, which are a centralised SAC and an
internal Sharī’ah committee/ Sharī’ah advisor.

Bank Negara Malaysia
Bank Negara Malaysia (BNM), is a statutory body which started operations
on 26 January 1959. BNM is governed by the Central Bank of Malaysia Act
2009. The role of BNM is to promote monetary and financial stability. This is
aimed at providing a conducive environment for the sustainable growth of
the Malaysian economy.

Securities Commision

The Securities Commission Malaysia (SC) is a statutory body entrusted
with the responsibility of regulating and systematically developing the
Malaysia’s capital markets. The SC was established on 1 March 1993. It has
direct responsibility in supervising and monitoring the activities of market
institutions and regulating all persons licensed under the Capital Markets
and Services Act 2007.

Shari'ah Advisor
of Capital Market
Product

Diagram 16 : Sharī‘ah Governance in Malaysia