Malaysia has always been one of the most regulated geographies for Islamic Banking and Finance. 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 deciphering them.

After IFSA 2013, the frequency of regulations came thick and fast and we try to keep up. We do enjoy reading these regulations and going into mind-combat with BNM. En-garde. May we live long and prosper and learn something from all the various guidelines.

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

REGULATORY ACTS / OTHER REGULATIONS

1. Companies Act 2016
2. Islamic Financial Services Act 2013
3. Financial Services Act 2013
4. Rang Undang Undang Kewangan 2012
5. Takaful Act 1984
6. Islamic Banking Act 1983
7. Exchange Control Malaysia 1953

SHARIAH RESOLUTIONS (click on this link for BNM’s latest SAC Updates)

1. Shariah Governance (2019)
2. SAC 182nd  Meeting : Collateralisation of Deposit and Investment Accounts (2018)
3. SAC 181st Meeting : Statement on Ijarah Financing (2017)
4. SAC 179th Meeting : Statement for Bai` al-Sarf in the Current Financial Operation (2017)
5. SAC 178th Meeting : Statement on Incidental Qard (2017)
6. Manual Rujukan Institusi Kewangan Islam kpd MPS (2016)
7. Resolutions of Shariah Advisory Council of BNM 2nd Edition
8. Implementation of Shariah Advisory Council of Bank Negara Malaysia’s Resolution on Bai’ ‘Inah (2012)
9. Shariah Governance Framework for Islamic Financial Institutions (2011)
10. 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)
11. Resolutions of Shariah Advisory Council of Bank Negara Malaysia (2007)

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

Also for the Securities Commission Shariah Advisory Council (SAC)  Rulings, click as follows:

1. Resolutions of the Shariah Advisory Council of the Securities Commission of Malaysia 
2. Resolutions of the Shariah Advisory Council of the Securities Commission of Malaysia (Second Edition 2016)

NOTICES, ANNOUNCEMENTS, FRAMEWORKS AND POLICY DOCUMENTS (NON-PRODUCTS)

2019

1. Shariah Governance (2019)
2. Net Stable Funding Ratio (2019)

2018

1. Financial Reporting (2018)
2. Capital Adequacy Framework for Islamic Banks (Risk Weighted Assets) (2018)
3. Capital Adequacy Framework for Islamic Banks (Capital Components) (2018)
4. Rate Of Return (Jan 2018)
5. AML CTF Digital Currencies (2018)
6. Investment Account Framework (Oct 2017) with : Reporting Manual IA Part A (Updated Jan 2018), IAF Reporting Manual Liquidity Part B (2015) and IAF FAQ (July 2016)

2017

1. Capital Adequacy Framework for Islamic Banks – Capital Components (Re-issue 06 Sept 2017)
2. Capital Adequacy Framework for Islamic Banks (Capital Components) (2017)
3. Capital Funds for Islamic Banks (2017)
4. Capital Adequacy Framework for Islamic Banks (Risk Weighted Assets) (2017)

2016

1. Prohibited Business Conduct (2016)
2. Financial Technology Regulatory Sandbox Framework (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)

2015

1. Regulatory Treatment of BNM Mudarabah Certificate (BMC) for Licensed Banks and Licensed Islamic Banks (2015)
2. Rate of Return – with attachment and Reporting template (2015)
3. Specification on Permitted Business or Activity for Licensed Person under FSA /IFSA 2013 (2015)

2014

1. Single Counterparty Exposure Limit for Islamic Banking Institutions (2014)
2. Guidelines on Credit Transactions and Exposures with Connected Parties for Islamic Banks (2014)
3. Perbankan Islam Logo (2014)
4. Introduction of New Products (Kijangnet re-upload) (2014)
5. Credit Card-i (2014)
6. Debit Card-i (2014)
7. Charge Card-i (2014)
8. Investment Account (updated and with attachment (2014)
9. Investment Account Framework (2014)
10. Rate of Return (2014)
11. Reference Rate Framework (2014)

2013

1. Framework of Rate of Return (2013)
2. Risk Informed Pricing (2013)
3. Guidelines on Product Transparency and Disclosure (2013)
4. Capital Funds for Islamic Banks (2013)
5. Guidelines on Corporate Governance for Licensed Institutions for Islamic Banks (GP1-i) (2013)
6. Single Counterparty Exposure Limit for Islamic Banks (2013)
7. Guidelines on Late Payment Charges for IFI (2013) & FAQ LPC

2012

1. Capital Adequacy Framework for Islamic Banks (Risk-Weighted Assets) (2012)
2. Liquidity Framework for Islamic Banking Institutions (2012)
3. Guidelines on the Imposition of Fees and Charges on Financial Products and Services (2012)
4. Guidelines on Skim Perbankan Islam (2012)
5. Guidelines on Responsible Financing (2012)
6. Capital Adequacy Framework for Capital Components (2012)

2011

1. Guidelines on Ibra’ (Rebate) for Sale-Based Financing (2011)
2. Guidelines on Late Payment Charges for Islamic Banking Institutions (2011)
3. Guidelines on Introduction of New Products (2011)
4. Guidelines on the Recognition and Measurement of PSIA as Risk Absorbent (2011)
5. Guidelines on Profit Equalisation Reserve (2011)
6. Credit Card-i – Guidelines (2011)
7. Statutory Reserve Requirement (2011)
8. Implementation of Basel III (2011)

2010

1. Prohibition on Specific or Restricted and Loss-Bearing Fund Placement from Islamic Banks (2010)
2. Guidelines on International Islamic Bank (2010)
3. Classification and Impairment Provisions for Loans or Financing (2010)
4. Guidelines on Investor Protection (2010)

2008

1. Guideline on Permitted Capital Market Activitives for Islamic Banks (2008)

2007

1. Guidelines on the Establishment of International Currency Business Unit (2007)

2006

1. Guidelines on Negotiable Instruments of Deposit (2006)
2. Guidelines on the Establishment of IIB ITO and ICBU (2006)

2004

1. Liquidity Framework-i (2004)

2003

1. Guidelines on Outsourcing of Islamic Banking Operations (2003)
2. Guidelines on Accepted Bills-i (2003)

2002

1. Guidelines on Islamic Sell and Buy Back Agreement (2002)

2000

1. Guidelines on Outsourcing of Banking Operations (2000)

1998

1. Guidelines on Skim Perbankan Islam (1998)

PRODUCT STANDARDS / POLICY DOCUMENT (PRODUCTS)

1. Tawarruq (2018) – Reissuance
2. Rahn (2018)
3. Bai Al-Sarf (2018)
4. Qard (2018) Reissuance
5. Kafalah (2017) Revised
6. Wa’ad (2017)
7. Debit Card-i (2016)
8. Credit Card-i (2016)
9. Ijarah (2016)
10. Wadiah (2016)
11. Hibah (2016)
12. Qard (2016)
13. Kafalah (2016)
14. Wakalah (2016)
15. Istisna (2015)
16. Tawarruq (2015)
17. Mudarabah (2015)
18. Musyarakah (2015)
19. 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. Implementation of Shariah Advisory Council of Bank Negara Malaysia’s Resolution on Bai ‘Inah (2012)
7. Agensi Kaunseling dan Pengurusan Kredit (AKPK) – Roles of Financial Service Providers (2011)
8. Circular on Measures to Ensure Sustainability in the Residential Property Market (2011)
9. Explanatory Notes NID / INI (2009)

CONCEPT PAPERS (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 (PRODUCTS / CONTRACTS)

1. 2017 ED – Rahn
2. 2017 ED – Bai Al Sarf
3. 2015 ED – Bai` al-Sarf (Shariah Requirements and Optional Practices)
4. 2015 ED – Rahn (Shariah Requirements and Optional Practices)
5. 2013 ED – Wakalah
6. 2013 ED – Wadi`ah
7. 2013 ED – Wadi`ah (Shariah Requirements and Optional Practices)
8. 2013 ED – Wa’d
9. 2013 ED – Tawarruq
10. 2013 ED – Hibah
11. 2013 ED – Bai Inah
12. 2013 ED – Kafalah

EXPOSURE DRAFTS (NON-PRODUCTS)

1. Outsourcing Exposure Draft (2017)
2. Net Stable Funding Ratio Exposure Draft (2017)
3. Leverage Ratio Exposure Draft (2017)

OTHER NOTIFICATIONS BY BNM

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 GUIDELINES (GENERAL)

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