Glossary
SAC
Shariah Advisory Council: Malaysia's national body whose rulings on Islamic finance bind the industry and are a reference for the courts.
The Shariah Advisory Council of Bank Negara Malaysia was established in May 1997 and operates under the Central Bank of Malaysia Act 2009. Bank Negara describes it as the highest Shariah authority for Islamic financial institutions in Malaysia, with roles including ascertaining Islamic law for supervised institutions and serving as a reference for courts and arbitrators. Its published compilation, Shariah Resolutions in Islamic Finance, is the most detailed public set of card-specific rulings anywhere and is the source of many entries in this glossary.
Related terms
Shariah boardThe panel of scholars inside a bank that decides whether its products are religiously acceptable.FatwaA scholar's or council's formal answer to a religious question.ISSCInternal Shariah Supervision Committee: the in-house scholar panel required at Islamic banks in some countries, notably the UAE.Bai' al-InahSelling something to someone on credit and buying it straight back for less cash, so they get money now and owe more later.UjrahA fee or wage paid for a service done for you.
Sources
- Bank Negara Malaysia, Shariah Advisory Council pages and Shariah Resolutions in Islamic Finance, 2nd edition (2010)