NEWHORIZON
NEWHORIZON - Institute of Islamic Banking and Insurance
NEWHORIZON - Institute of Islamic Banking and Insurance
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<strong>NEWHORIZON</strong> Shawwal-dhu al Hijjah 1431<br />
NEWS<br />
Could Malaysia Rival the UK in the Resolution of<br />
Islamic Financial Disputes?<br />
In a July address to the 21st<br />
Conference of Presidents of Law<br />
Associations in Asia in Kuala<br />
Lumpur, Datuk Muhammad<br />
Ibrahim, the recently appointed<br />
Deputy Governor of Malaysia’s<br />
central bank, made a bid to<br />
position Malaysia as an<br />
alternative to the UK as the<br />
legal system of choice for<br />
resolving Islamic financial<br />
disputes. He commented that<br />
recent cases tried in the English<br />
courts have highlighted the<br />
hesitancy of UK judges to<br />
deliberate on issues concerning<br />
Shari’ah principles in Islamic<br />
finance transactions. He also<br />
highlighted the fact that while<br />
evidence on Shari’ah matters<br />
can be admitted in UK courts,<br />
such evidence or advice is not<br />
binding.<br />
In Malaysia, on the other hand,<br />
there is a dedicated High Court<br />
for Islamic finance-related cases,<br />
where judges can refer to the<br />
SAC (Shari’ah Advisory<br />
Council) on questions relating<br />
to the Shari’ah and the rulings<br />
are then binding. The next step<br />
for Malaysia would be to<br />
harmonise existing laws to<br />
accommodate and facilitate<br />
Islamic finance in the most<br />
legally efficient way possible,<br />
because the future of Islamic<br />
finance depended on its agility<br />
and innovativeness in<br />
developing new products. He<br />
believed that clear and easily<br />
enforceable laws would serve<br />
to benefit the industry<br />
worldwide.<br />
To that end he announced the<br />
formation of a Law<br />
Harmonisation Committee,<br />
comprising key government<br />
stakeholders, including the<br />
Attorney General’s Chambers as<br />
well as industry players and<br />
experienced Islamic finance legal<br />
practitioners. He also<br />
announced that Tun Abdul<br />
Hamid bin Mohamad, the<br />
former Chief Justice of Malaysia<br />
and a member of Bank Negara’s<br />
Shari’ah Advisory Council<br />
would chair the committee. The<br />
remit of the Law Harmonisation<br />
Committee is to position and<br />
strengthen existing laws as the<br />
laws of choice for Islamic<br />
financial transactions.<br />
At the end of the day, the<br />
success or otherwise of this<br />
move will depend on the<br />
willingness of other countries,<br />
particularly the major financial<br />
centres in the Middle East, to<br />
accept Malaysian laws and<br />
particularly the thorny issue of<br />
Qatar Islamic Bank’s (QIB)<br />
subsidiary, European Finance<br />
House (EFH) has recently<br />
rebranded as QIB UK in order<br />
to reinforce its positioning<br />
within QIB’s expanding global<br />
network. The primary<br />
motivation behind the<br />
rebranding is to further bring<br />
EFH under the umbrella of<br />
QIB’s well-established identity<br />
as one of the regions foremost<br />
Islamic banking institutions<br />
and the world’s 4th largest<br />
Islamic bank in terms of assets.<br />
different interpretations of<br />
Shari’ah.<br />
European Finance House<br />
Rebrands as QIB UK<br />
EFH obtained authorisation<br />
from the UK Financial<br />
Services Authority in 2008<br />
and operates as a full service,<br />
stand alone Islamic<br />
investment banking<br />
institution located in Berkeley<br />
Square, London. QIB UK<br />
benefits from having<br />
immediate access to QIB’s<br />
extensive network of<br />
correspondent financial<br />
institutions throughout<br />
the Islamic world and<br />
beyond.<br />
www.newhorizon-islamicbanking.com IIBI 7