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null Introduction to Malaysian Islamic Finance Regulatory Structures

Introduction to Malaysian Islamic Finance Regulatory Structures

14 Jun 2013 | Friday

Malaysia’s approach to the regulation of Islamic finance is an integrated one. While the Islamic financial system is governed by its own specific legal structures, it is also subject to many regulations similar to those of the conventional system with which it exists side by side.

The regulatory and supervisory of Islamic banking institutions and Takaful operators in Malaysia are governed by the Islamic Financial Services Act 2013 (IFSA). This Act falls under the purview of Bank Negara Malaysia, which regulates and supervises the Islamic banking and Takaful sectors.

In the Islamic capital market, the Securities Commission Malaysia is responsible for issuing licences to market intermediaries and guidelines on the offering of Islamic securities.

Matters related to offshore finance industry in Labuan are regulated by the Labuan Financial Services Authority (LOFSA).