Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191001
{"title":"Index","authors":"","doi":"10.1108/978-1-78973-545-120191001","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191001","url":null,"abstract":"","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124520411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191012
Noor Mahinar Abu Bakar, Norhashimah Mohd. Yasin, Siti Salwani Razali, Ng See Teong
This chapter aims to examine Bank Negara Malaysia’s (BNM) approach in fulfilling its financial consumer protection mandate from unfair contract terms and the statutory framework relevant for consumer protection in the domestic market. This is a qualitative-based research. Using content analysis, this study analyses BNM’s Financial Stability and Payment Systems Report from 2012 to 2016, specifically on the ‘market conduct and consumer empowerment’ to explore BNM’s prudential regulatory, supervisory and consumer protection roles in protecting bank consumers from unfair contract terms. It is found that even if a number of standards and guidelines have been issued by BNM in improving ‘fairness and transparency’, the potential risk facing bank consumers from unfair terms in standard consumer contracts of Islamic banks especially where terms may be unfair or unclear remains unchanged. This study recommends that BNM as the Central Bank and financial regulator of Malaysia promotes self-regulation of the Islamic banks by adopting value-based banking of a consumer-focussed culture in delivering an effective protection for consumers from unfair contract terms and empowering them in their dealings with Islamic banks in Malaysia. This study will be helpful in bringing a policy formulation by BNM in identifying their weak areas and suggesting improvements in pursuing a strong consumer protection agenda from unfair contract terms.
{"title":"The Role of Financial Regulator in Protecting Bank Consumers from Unfair Contract Terms: The Case of Malaysian Islamic Banks","authors":"Noor Mahinar Abu Bakar, Norhashimah Mohd. Yasin, Siti Salwani Razali, Ng See Teong","doi":"10.1108/978-1-78973-545-120191012","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191012","url":null,"abstract":"This chapter aims to examine Bank Negara Malaysia’s (BNM) approach in fulfilling its financial consumer protection mandate from unfair contract terms and the statutory framework relevant for consumer protection in the domestic market. This is a qualitative-based research. Using content analysis, this study analyses BNM’s Financial Stability and Payment Systems Report from 2012 to 2016, specifically on the ‘market conduct and consumer empowerment’ to explore BNM’s prudential regulatory, supervisory and consumer protection roles in protecting bank consumers from unfair contract terms. It is found that even if a number of standards and guidelines have been issued by BNM in improving ‘fairness and transparency’, the potential risk facing bank consumers from unfair terms in standard consumer contracts of Islamic banks especially where terms may be unfair or unclear remains unchanged. This study recommends that BNM as the Central Bank and financial regulator of Malaysia promotes self-regulation of the Islamic banks by adopting value-based banking of a consumer-focussed culture in delivering an effective protection for consumers from unfair contract terms and empowering them in their dealings with Islamic banks in Malaysia. This study will be helpful in bringing a policy formulation by BNM in identifying their weak areas and suggesting improvements in pursuing a strong consumer protection agenda from unfair contract terms.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114715782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191021
Syed Fadhil Hanafi, S. A. Rahman
Regulation of digital currency is still at its infancy as authorities around the world grapple with its mechanics, and study its impact and the best method to regulate it. Significant increase in the use of digital cryptocurrency based on Blockchain technology post-Bitcoin phenomenon had challenged the conventional idea of central bank monopoly in currency issuance. This had also raised concern that digital currency being used as an instrumentality of crime given its anonymity feature that allows for the flow of funds without tracing and the fact that it is built on trustless system that provides security of transaction. This concern, plus other consideration including the prospect of issuing central bank digital currency, had driven some authorities around the world to adopt countermeasures either via an outright ban or a regulatory regime that suits the nature of digital currency, which is purely virtual and anonymous. However, in coming out with an appropriate legal regime, authorities faced multiple difficulties especially when the pace of legal development does not sync congruently with the rapid progress of technology. In addition, given the growing prominence of Islamic finance around the world, questions also arise pertaining to the legality of digital cryptocurrency from the Islamic perspective. Through a qualitative study of relevant literatures as well as legislations in different countries, this chapter discusses the various categories of digital currency, its position from the Islamic perspective, regulatory regimes of digital cryptocurrency in selected jurisdictions and challenges faced by authorities around the world in regulating this new medium of exchange.
{"title":"Regulating Digital Currency: Taming the Unruly","authors":"Syed Fadhil Hanafi, S. A. Rahman","doi":"10.1108/978-1-78973-545-120191021","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191021","url":null,"abstract":"Regulation of digital currency is still at its infancy as authorities around the world grapple with its mechanics, and study its impact and the best method to regulate it. Significant increase in the use of digital cryptocurrency based on Blockchain technology post-Bitcoin phenomenon had challenged the conventional idea of central bank monopoly in currency issuance. This had also raised concern that digital currency being used as an instrumentality of crime given its anonymity feature that allows for the flow of funds without tracing and the fact that it is built on trustless system that provides security of transaction. This concern, plus other consideration including the prospect of issuing central bank digital currency, had driven some authorities around the world to adopt countermeasures either via an outright ban or a regulatory regime that suits the nature of digital currency, which is purely virtual and anonymous. However, in coming out with an appropriate legal regime, authorities faced multiple difficulties especially when the pace of legal development does not sync congruently with the rapid progress of technology. In addition, given the growing prominence of Islamic finance around the world, questions also arise pertaining to the legality of digital cryptocurrency from the Islamic perspective. Through a qualitative study of relevant literatures as well as legislations in different countries, this chapter discusses the various categories of digital currency, its position from the Islamic perspective, regulatory regimes of digital cryptocurrency in selected jurisdictions and challenges faced by authorities around the world in regulating this new medium of exchange.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"32 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116336882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191011
Rusni Hassan, Ilyana Ilias
Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in establishing institutional framework for consumer protection, entrusting an agency with multifarious tasks may not be the best and effective way in handling consumer protection issues. Thus, this chapter attempts to explore the new paradigm of hisbah as a consumer protection institution in Malaysia with a special reference to the Islamic consumer credit industry. While utilising the doctrinal legal research methodology, relevant sources of law have been examined and analysed. This research finds that the classical hisbah institution provides a good reference point in establishing regulatory agency and dispute management body. Nevertheless, some modifications are required to remain relevant especially in terms of specialisation of role and function. Likewise, it is viewed that adjustment of the hisbah institution is also necessary regarding the characteristic of the muhtasib (ombudsman).
{"title":"Hisbah as a Consumer Protection Institution in Malaysia: A Special Reference to Islamic Consumer Credit Industry","authors":"Rusni Hassan, Ilyana Ilias","doi":"10.1108/978-1-78973-545-120191011","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191011","url":null,"abstract":"Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in establishing institutional framework for consumer protection, entrusting an agency with multifarious tasks may not be the best and effective way in handling consumer protection issues. Thus, this chapter attempts to explore the new paradigm of hisbah as a consumer protection institution in Malaysia with a special reference to the Islamic consumer credit industry. While utilising the doctrinal legal research methodology, relevant sources of law have been examined and analysed. This research finds that the classical hisbah institution provides a good reference point in establishing regulatory agency and dispute management body. Nevertheless, some modifications are required to remain relevant especially in terms of specialisation of role and function. Likewise, it is viewed that adjustment of the hisbah institution is also necessary regarding the characteristic of the muhtasib (ombudsman).","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"2022 8","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114048091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191008
B. Ibrahim, M. C. M. Salleh, A. Mohd, Muhammad Laeba
This chapter offers a practitioners’ perspective on how Islamic banks in Malaysia deal with unlawful sources of funds. Specifically, it investigates the practice of Islamic banks in Malaysia in dealing with funds that originate from unlawful sources such as accepting deposits for safe-keeping and investment and providing financial facilities to customers whose incomes come from unlawful sources. This is regardless of whether the sources of fund are wholly unlawful or there is a mix of lawful and unlawful sources. A quantitative methodology is adopted to collect data from selected industry practitioners who are directly involved with Islamic banks, mainly officers of Sharīʿah departments, members of Sharīʿah committees and other stakeholders of Islamic banks. Based on a simple descriptive analysis, it is found that majority of the respondents opine that when the sources of funds are deemed unlawful, the bank cannot accept such deposits, investments or give financing to a customer if he or she is known to possess unlawful sources of funds. With respect to the mixed sources of funds or activities, that is, lawful and unlawful, the bank should not be prevented from receiving the funds either for safe-keeping, investment or payment of financing. The study also finds that banks have the right to investigate the sources of funds of the customers whether they are derived from Sharīʿah compliant, non-Sharīʿah compliant or mixed sources as part of the general due diligence implemented by such banks.
{"title":"Dealing with Unlawful Sources of Funds Among Islamic Banks in Malaysia: The Practitioners’ Perspectives","authors":"B. Ibrahim, M. C. M. Salleh, A. Mohd, Muhammad Laeba","doi":"10.1108/978-1-78973-545-120191008","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191008","url":null,"abstract":"This chapter offers a practitioners’ perspective on how Islamic banks in Malaysia deal with unlawful sources of funds. Specifically, it investigates the practice of Islamic banks in Malaysia in dealing with funds that originate from unlawful sources such as accepting deposits for safe-keeping and investment and providing financial facilities to customers whose incomes come from unlawful sources. This is regardless of whether the sources of fund are wholly unlawful or there is a mix of lawful and unlawful sources. A quantitative methodology is adopted to collect data from selected industry practitioners who are directly involved with Islamic banks, mainly officers of Sharīʿah departments, members of Sharīʿah committees and other stakeholders of Islamic banks. Based on a simple descriptive analysis, it is found that majority of the respondents opine that when the sources of funds are deemed unlawful, the bank cannot accept such deposits, investments or give financing to a customer if he or she is known to possess unlawful sources of funds. With respect to the mixed sources of funds or activities, that is, lawful and unlawful, the bank should not be prevented from receiving the funds either for safe-keeping, investment or payment of financing. The study also finds that banks have the right to investigate the sources of funds of the customers whether they are derived from Sharīʿah compliant, non-Sharīʿah compliant or mixed sources as part of the general due diligence implemented by such banks.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134352600","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191009
Safinar Salleh, Akmal Hidayah Halim, Uzaimah Ibrahim, Mohamad Asmadi bin Abdullah
A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependents after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah. In this respect, the participant is free to decide to whom the benefits are to be given since the law is silent as to the criteria of the beneficiary. This situation gives rise to the issue on whether such practice fulfils the objectives of Shariah, especially when the nominated beneficiary is not the sole dependent of the deceased participant. Therefore, this research aims to evaluate the status of family takaful benefits; to analyse the rules of conditional hibah from the Shariah perspective and to propose solutions whenever necessary. The research adopts doctrinal analysis by examining existing primary and secondary materials including statutory provisions and other legal and non-legal literature. The study predicates that the application of conditional hibah to the whole benefits does not reflect the objectives of Shariah if determination on the status of the benefits is solely based on the nomination made by the participant. It is observed that takaful benefits payable from the Participant’s Account (PA) should be considered as the deceased’s estate and must be distributed according to fara’id. Conversely, the sum covered payable from the Participant’s Special Account (PSA) may be paid to the deceased’s dependents whose criteria are determined by the Shariah Advisory Council (SAC) as the highest authority in Islamic financial matters.
{"title":"The Objectives of Sharīʿah in Nomination for the Payment of Family Takaful Benefits","authors":"Safinar Salleh, Akmal Hidayah Halim, Uzaimah Ibrahim, Mohamad Asmadi bin Abdullah","doi":"10.1108/978-1-78973-545-120191009","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191009","url":null,"abstract":"A family takaful certificate is subscribed by a takaful participant for the purpose of preparing financial support for his dependents after his death. The takaful benefits could then be made payable to a nominee named as the beneficiary under conditional hibah. In this respect, the participant is free to decide to whom the benefits are to be given since the law is silent as to the criteria of the beneficiary. This situation gives rise to the issue on whether such practice fulfils the objectives of Shariah, especially when the nominated beneficiary is not the sole dependent of the deceased participant. Therefore, this research aims to evaluate the status of family takaful benefits; to analyse the rules of conditional hibah from the Shariah perspective and to propose solutions whenever necessary. The research adopts doctrinal analysis by examining existing primary and secondary materials including statutory provisions and other legal and non-legal literature. The study predicates that the application of conditional hibah to the whole benefits does not reflect the objectives of Shariah if determination on the status of the benefits is solely based on the nomination made by the participant. It is observed that takaful benefits payable from the Participant’s Account (PA) should be considered as the deceased’s estate and must be distributed according to fara’id. Conversely, the sum covered payable from the Participant’s Special Account (PSA) may be paid to the deceased’s dependents whose criteria are determined by the Shariah Advisory Council (SAC) as the highest authority in Islamic financial matters.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126387774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191007
U. A. Oseni, K. Hassan, Rusni Hassan
{"title":"Introduction: Revisiting the Confines and Significance of Islamic Finance Law","authors":"U. A. Oseni, K. Hassan, Rusni Hassan","doi":"10.1108/978-1-78973-545-120191007","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191007","url":null,"abstract":"","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120947446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191010
Sharifah Zubaidah Syed Abdul Kader, N. Mohamad
Legal and Sharīʿah issues abound in creating security to finance waqf property development in Malaysia, for it involves integrating the Sharīʿah concept of waqf with requirements of Malaysian land law as well as the requirements of modern finance under civil law. Banks and financial institutions will not generally finance property development without any form of security for the loan. The best type of security transaction under Malaysian land law is to create a charge on the land under the National Land Code 1965, rendering the land liable as a security which upon default of the chargor, would entitle the chargee to seek statutory remedies including sale of the land. Such may not be feasible for waqf properties due to the inalienable nature of such properties. Due to the remedy of sale of the land upon default, the same issues would arise in regard to other types of securities like a lien and a loan agreement cum assignment. There is therefore a need to diversify the available options in creating security over waqf property. What are the existing Sharīʿah restrictions on waqf property? Do these restrictions affect the creation of security over waqf lands under conventional Malaysian land law? What are the legal and Sharīʿah issues relating to creating a charge over waqf lands? What are some feasible options? Initial findings are that creating a charge on a lease of waqf land as well as resorting to a hybrid form of a traditional security transaction in Malaysia, called ‘Jualjanji’, may hold some answers. Through doctrinal legal research and content analysis, this chapter explores these issues and recommends feasible solutions.
{"title":"Creating Security to Finance Waqf Property Development in Malaysia: Issues and Solutions","authors":"Sharifah Zubaidah Syed Abdul Kader, N. Mohamad","doi":"10.1108/978-1-78973-545-120191010","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191010","url":null,"abstract":"Legal and Sharīʿah issues abound in creating security to finance waqf property development in Malaysia, for it involves integrating the Sharīʿah concept of waqf with requirements of Malaysian land law as well as the requirements of modern finance under civil law. Banks and financial institutions will not generally finance property development without any form of security for the loan. The best type of security transaction under Malaysian land law is to create a charge on the land under the National Land Code 1965, rendering the land liable as a security which upon default of the chargor, would entitle the chargee to seek statutory remedies including sale of the land. Such may not be feasible for waqf properties due to the inalienable nature of such properties. Due to the remedy of sale of the land upon default, the same issues would arise in regard to other types of securities like a lien and a loan agreement cum assignment. There is therefore a need to diversify the available options in creating security over waqf property. What are the existing Sharīʿah restrictions on waqf property? Do these restrictions affect the creation of security over waqf lands under conventional Malaysian land law? What are the legal and Sharīʿah issues relating to creating a charge over waqf lands? What are some feasible options? Initial findings are that creating a charge on a lease of waqf land as well as resorting to a hybrid form of a traditional security transaction in Malaysia, called ‘Jualjanji’, may hold some answers. Through doctrinal legal research and content analysis, this chapter explores these issues and recommends feasible solutions.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124193549","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191013
Suhaimi bin Mhd Sarif, Ainul Jaria Maidin, J. Ibrahim, A. Dahlan
Dynamism of digital economy requires innovation in the mobile payment system to provide for the free flow of information to facilitate electronic transactions. However, regulations and standards were introduced at the global and country levels to impose limitations on mobile payment system to protect consumers’ interests. The Malaysian government introduced the Anti-money Laundering, Anti-terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613) (AMLA) to protect the people from being involved in offences both locally and internationally and an unlawful activity carried out physically or by using virtual mechanisms. It is argued in this study that AMLA has hindered the innovation of the digital economic system that is promoted by the government in line with global developments. The research method adopted is personal interview with selected respondents to gather their views on the challenges posed by the restrictions imposed by AMLA that has had the impact of limiting innovations in the mobile payment system sector.
{"title":"Effects of Anti-money Laundering and Anti-terrorism Financing Law on Innovation of Mobile Payment Systems in Malaysia","authors":"Suhaimi bin Mhd Sarif, Ainul Jaria Maidin, J. Ibrahim, A. Dahlan","doi":"10.1108/978-1-78973-545-120191013","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191013","url":null,"abstract":"Dynamism of digital economy requires innovation in the mobile payment system to provide for the free flow of information to facilitate electronic transactions. However, regulations and standards were introduced at the \u0000global and country levels to impose limitations on mobile payment system to protect consumers’ interests. The Malaysian government introduced the Anti-money Laundering, Anti-terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613) (AMLA) to protect the people from being involved in offences both locally and internationally and an unlawful activity carried out physically or by using virtual mechanisms. It is argued in this study that AMLA has hindered the innovation of the digital economic system that is promoted by the government in line with global developments. The research method adopted is personal interview with selected respondents to gather their views on the challenges posed by the restrictions imposed by AMLA that has had the impact of limiting innovations \u0000in the mobile payment system sector.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126667244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-08-26DOI: 10.1108/978-1-78973-545-120191014
Raja Liza Raja Alias, Norhashimah Mohd. Yasin, B. Ibrahim, Mohd Yazid Zul Kepli
Money laundering and terrorism financing are financial crimes which affect the economic stability and integrity of the country. In this respect, the relevant regulator has a duty to preserve and protect the financial stability of the country. This duty is in line with the concept of the protection of wealth (hifz al-mal) under the maqāsid al-Sharīʿah or higher objectives of Islamic law framework. The objective of this chapter is to examine the protection of wealth vis-a-vis money laundering and terrorism financing from the maqāsid al-Sharīʿah perspective. This study analyses the primary and secondary legal sources on the laws and regulations on anti-money laundering and counter financing of terrorism while also considering the primary and secondary sources of Islamic law. This study is significant as it makes an exploration of the maqāsid al-Sharīʿah perspectives and discusses the position of unlawful wealth that is acquired from the illicit gain of property from the abuse of money laundering and the financing of terrorist activities. This chapter suggests that Islamic law emphasises on the lawful ownership of wealth and prohibits a person from acquiring illicit wealth. This study will contribute towards the study on the deployment of maqāsid al-Sharīʿah, which is beneficial in safeguarding an individual action as well as the country’s commitment against abuse and misuse of wealth for financial crimes.
{"title":"Combating Money Laundering and Terrorism Financing: Perspectives from Maqāsid al-Sharīʿah","authors":"Raja Liza Raja Alias, Norhashimah Mohd. Yasin, B. Ibrahim, Mohd Yazid Zul Kepli","doi":"10.1108/978-1-78973-545-120191014","DOIUrl":"https://doi.org/10.1108/978-1-78973-545-120191014","url":null,"abstract":"Money laundering and terrorism financing are financial crimes which affect the economic stability and integrity of the country. In this respect, the relevant regulator has a duty to preserve and protect the financial stability of the country. This duty is in line with the concept of the protection of wealth (hifz al-mal) under the maqāsid al-Sharīʿah or higher objectives of Islamic law framework. The objective of this chapter is to examine the protection of wealth vis-a-vis money laundering and terrorism financing from the maqāsid al-Sharīʿah perspective. This study analyses the primary and secondary legal sources on the laws and regulations on anti-money laundering and counter financing of terrorism while also considering the primary and secondary sources of Islamic law. This study is significant as it makes an exploration of the maqāsid al-Sharīʿah perspectives and discusses the position of unlawful wealth that is acquired from the illicit gain of property from the abuse of money laundering and the financing of terrorist activities. This chapter suggests that Islamic law emphasises on the lawful ownership of wealth and prohibits a person from acquiring illicit wealth. This study will contribute towards the study on the deployment of maqāsid al-Sharīʿah, which is beneficial in safeguarding an individual action as well as the country’s commitment against abuse and misuse of wealth for financial crimes.","PeriodicalId":346480,"journal":{"name":"Emerging Issues in Islamic Finance Law and Practice in Malaysia","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129422854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：