Regulations (Malaysia)

Malaysia has always been one of the most regulated geographies for Islamic Banking. For many years, the Central Bank of Malaysia (Bank Negara Malaysia) has been churning out regulations after regulations while giving practitioners like us sleepless nights.

For better or worse, we do enjoy reading these regulations and going into mind-combat with BNM. En-garde.

To go straight to BNM’s Guidelines site, click on below BNM logo.

BNM

Click on picture to go to BNM website

Regulatory Acts

  1. Islamic Financial Services Act 2013
  2. Financial Services Act 2013
  3. Rang Undang Undang Kewangan 2012
  4. Takaful Act 1984
  5. Islamic Banking Act 1983
  6. Exchange Control Malaysia 1953

Shariah Resolutions (click on this link for BNM’s latest SAC Updates)

  1. Manual Rujukan IKI kpd MPS (2016)
  2. Resolutions of Shariah Advisory Council of BNM 2nd Edition
  3. Implementation of Shariah Advisory Council of Bank Negara Malaysia’s Resolution on Bai’ ‘Inah (2012)
  4. Shariah Governance Framework for Islamic Financial Institutions (2011)
  5. Resolutions of the Shariah Advisory Council of Bank Negara Malaysia on Application of Wa’d (promise) in Forward Currency Transaction; and Takaful Benefits Payable from Participants’ Risk Fund (2010)

Bank Negara Malaysia Guidelines (or Click here for BNM Announcements)

  1. Capital Adequacy Framework for Islamic Banks (Risk Weighted Assets) (2017)
  2. Prohibited Business Conduct (2016)
  3. Guideline on Business Continuity Management for Participants of MyClear Services (2016)
  4. Financial Reporting for Islamic Banking Institutions (2016)
  5. Liquidity Coverage Ratio (2016)
  6. Reference Rate Framework (2016)
  7. Statutory Reserve Requirements (2016)
  8. Capital Adequacy Framework for Islamic Bank (2016)
  9. Regulatory Treatment of BNM Mudarabah Certificate (BMC) for Licensed Banks and Licensed Islamic Banks (2015)
  10. Rate of Return – with attachment and Reporting template (2015)
  11. Specification on Permitted Business or Activity for Licensed Person under FSA /IFSA 2013 (2015)
  12. Single Counterparty Exposure Limit for Islamic Banking Institutions (2014)
  13. Guidelines on Credit Transactions and Exposures with Connected Parties for Islamic Banks (2014)
  14. Perbankan Islam Logo (2014)
  15. Introduction of New Products (Kijangnet re-upload) (2014)
  16. Credit Card-i (2014)
  17. Debit Card-i (2014)
  18. Charge Card-i (2014)
  19. Investment Account (updated and with attachment (2014)
  20. Investment Account Framework (2014)
  21. Rate of Return (2014)
  22. Reference Rate Framework (2014)
  23. Framework of Rate of Return (2013)
  24. Risk Informed Pricing (2013)
  25. Guidelines on Product Transparency and Disclosure (2013)
  26. Capital Funds for Islamic Banks (2013)
  27. Guidelines on Corporate Governance for Licensed Institutions for Islamic Banks (GP1-i) (2013)
  28. Single Counterparty Exposure Limit for Islamic Banks (2013)
  29. Capital Adequacy Framework for Islamic Banks (Risk-Weighted Assets) (2012)
  30. Liquidity Framework for Islamic Banking Institutions (2012)
  31. Guidelines on the Imposition of Fees and Charges on Financial Products and Services (2012)
  32. Guidelines on Skim Perbankan Islam (2012)
  33. Guidelines on Responsible Financing (2012)
  34. Capital Adequacy Framework for Capital Components (2012)
  35. Guidelines on Ibra’ (Rebate) for Sale-Based Financing (2011)
  36. Guidelines on Late Payment Charges for Islamic Banking Institutions (2011)
  37. Guidelines on Introduction of New Products (2011)
  38. Guidelines on the Recognition and Measurement of PSIA as Risk Absorbent (2011)
  39. Guidelines on Profit Equalisation Reserve (2011)
  40. Credit Card-i – Guidelines (2011)
  41. Statutory Reserve Requirement (2011)
  42. Prohibition on Specific or Restricted and Loss-Bearing Fund Placement from Islamic Banks (2010)
  43. Guidelines on International Islamic Bank (2010)
  44. Classification and Impairment Provisions for Loans or Financing (2010)
  45. Guidelines on Investor Protection (2010)
  46. Guideline on Permitted Capital Market Activitives for Islamic Banks (2008)
  47. Guidelines on the Establishment of International Currency Business Unit (2007)
  48. Guidelines on Negotiable Instruments of Deposit (2006)
  49. Guidelines on the Establishment of IIB ITO and ICBU (2006)
  50. Liquidity Framework-i (2004)
  51. Guidelines on Outsourcing of Islamic Banking Operations (2003)
  52. Guidelines on Accepted Bills-i (2003)
  53. Guidelines on Islamic Sell and Buy Back Agreement (2002)
  54. Guidelines on Outsourcing of Banking Operations (2000)
  55. Guidelines on Skim Perbankan Islam (1998)

Product Standards / Policy Documents

  1. Kafalah_(2017) Revised
  2. Wa’ad (2017)
  3. Debit Card-i (2016)
  4. Credit Card-i (2016)
  5. Ijarah (2016)
  6. Wadiah (2016)
  7. Hibah (2016)
  8. Qard (2016)
  9. Kafalah (2016)
  10. Wakalah (2016)  + Industry Feedback on Wakalah Standards
  11. Istisna (2015)
  12. Tawarruq (2015)
  13. Mudarabah (2015)
  14. Musyarakah (2015)
  15. Murabahah (2013)

Notifications by Bank Negara Malaysia

  1. Notification – Special Deposit Facility (2016)
  2. Transition policy under Islamic Financial Services Act 2013 (IFSA) (2014)
  3. Removal of 2.0% cap on Islamic Current Accounts (2014)
  4. Basel III Observation Period Reporting (Revised) (2013)
  5. Notification of Stamp Duty Remission to LHDN (2013)
  6. Agensi Kaunseling dan Pengurusan Kredit (AKPK) – Roles of Financial Service Providers (2011)
  7. Circular on Measures to Ensure Sustainability in the Residential Property Market (2011)
  8. Explanatory Notes NID / INI (2009)

Bank Negara Malaysia Concept Paper (CP)

  1. CP – Wa`d (2016)
  2. CP – Qard (2016)
  3. CP – Hibah (2016)
  4. CP – Capital Adequacy Framework (Islamic Banking) (2015)
  5. CP – Capital Adequacy Framework (Islamic Banking) Risk Weighted Average (2015)
  6. CP – Kafalah (2015)
  7. CP – Wakalah (2015)
  8. CP – Tawarruq (2015)
  9. CP – Wadi’ah (2015)
  10. CP – Liquidity Coverage Ratio (2014)
  11. CP – Ijarah (2014)
  12. CP – Istisna (2014)
  13. CP – New Reference Rate Framework (2014)
  14. CP – Mudarabah (Shariah Requirement, Optional Practices, Operational Requirements) (2013)
  15. CP – Musharakah (Shariah Requirement, Optional Practices, Operational Requirements) (2013)
  16. CP – Conduct of Business for Retail Financing (2013)
  17. CP – Investment Account (2013)
  18. CP – Charge Card Requirements (2013) 
  19. CP – Debit Card-i Requirements (2013)

Exposure Drafts

  1. 2015 ED – Bai` al-Sarf (Shariah Requirements and Optional Practices)
  2. 2015 ED – Rahn (Shariah Requirements and Optional Practices)
  3. 2013 ED – Wakalah
  4. 2013 ED – Wadi`ah
  5. 2013 ED – Wadi`ah (Shariah Requirements and Optional Practices)
  6. 2013 ED – Wa’d
  7. 2013 ED – Tawarruq
  8. 2013 ED – Hibah
  9. 2013 ED – Bai Inah
  10. 2013 ED – Kafalah

Other Notifications

  1. Remission of Stamp Duty – Shariah Compliant Financing Instruments Residential Properties (2016)
  2. Guidelines on Deposit Insurance Coverage for Deposits (2013)
  3. Basel III Liquidity Coverage Ratio and Tools (2013)
  4. GST Industry Guide – Islamic Banking (As at 1 November 2013)
  5. Guidelines for Islamic Real Estate Investment Trusts (2005)

Other Regulatory Guidelines & General stuff!!

  1. Reclassifying Islamic Deposits after IFSA – Bank Islam 2014
  2. Managing Risks of Electronic Banking Direct Debit and Risks Associated with Payment Instruments
  3. Lending and Financing to Priority Sectors 2015-2016
  4. Payment Card Reform Framework
  5. Introduction to Base Rate Framework – ASAS Presentation March 25 2015 (Brochure Liqa’ 2015)

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