What’s the main role of the Shariah Advisory Council (SAC) in Bank Negara Malaysia?

• Approving Islamic financial products
• Advising on Shariah compliance in Islamic finance
• Managing Islamic banking operations
• Overseeing conventional financial regulations

IFSA 2013 one of law officially established the Shariah Advisory Council (SAC)?

Who appoints the members of the Shariah Advisory Council (SAC)?

• The Board of Directors of Bank Negara Malaysia
• The Malaysian Government
• The Board of Directors of Islamic banks
• Each Islamic financial institution

What’s the key responsibility of a Shariah Committee in an Islamic financial institution?

• At least 5 members
• At least 7 members
• At least 3 members
• No specific requirement

Why are SAC and Shariah Committees important in Islamic finance?

• To introduce conventional banking systems into Islamic finance
• To ensure all financial activities follow Shariah principles
• To remove the need for Shariah compliance audits
• To create competition among financial institutions

Who appoint the Shariah Committee of an Islamic bank?

• SAC
• The Bank’s Board of Directors
• The Prime Minister

Is it Companies Act 2016 regulation govers the formation of Shariah Committee in Islamic financial institutions?

What is the legal status of the rulings made by the SAC?

• Not applicable to Takaful operators
• Binding on Islamic financial institutions
• Recommendations only

Can a Shariah Comittee overrule a decision made by the SAC?

Ensure Shariah compliance of operations is the main role of Shariah Committe in Islamic banks?