Malaysia as a regional islamic financial centre
- Kuala Lumpur as regional resource centre
- Labuan IOFC as platform to foreign currency bond issue and regional HQ for financial institutions offering islamic finance
Penetration rate of 20% vis-a-vis
- Banking industry market by 2010 in terms of assets, financing and deposit
- Insurance industry's market share(assets, contributions)
- Full fledged islamic banking operations
Problems concerning customers of IB:
- Bai-bithaman Ajil (BBA) Financing
- Legal documentation
Selected Islamic Legal Maxims for IB:
- Profit goes with responsibility
- The intentions and meaning, not the wording or the construction of contract must be considered.
- An act is judged in accordance with its intentions.
- Preventions of evils takes precedence over bringing about benefits
Legal disputes:
BIMB v. Tinta Press
BIMB v. Adnan Omar
Dato' Nik Mahmood v. BIMB
Affin Bank v. Zulkifli Abdullah
THE CRUX OF THE DISPUTE:
A bank under the Islamic Banking Act 1983, is a company. Banking, incorporation and regulation of companies falls within the Federal Lists. The Civil Courts will have jurisdiction over Islamic Banks and Shariah Courts will not preside islamic banking cases.
The civil judges make judgments based on written legal documents and not what islamic commercial law said or implied.
Conclusion: Can anyone suggest/recommend suitable remedy for the fatal defects above?
1.Should a special tribunal be set up just to hear islamic banking disputes
2.Amend the constitution and let the Shariah Court hear islamic banking cases
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