Tuesday, July 27, 2010

Law harmonisation panel formation to strengthen existing Islamic finance laws

KUALA LUMPUR: The formation of a Law Harmonisation Committee is to position and strengthen existing laws as the laws of choice for Islamic financial transactions, says Bank Negara Malaysia.

Deputy governor Datuk Muhammad Ibrahim said the committee comprised members from among key government stakeholders like the Attorney-General's chambers, industry players and experienced Islamic finance legal practitioners.

The committee will be chaired by Tun Abdul Hamid Mohamad, the former Chief Justice. who is also a member of Bank Negara's Syariah Advisory Council, he said at a luncheon talk at the 21st Conference of Presidents of Law Associations in Asia (POLA) here on Tuesday, July 27.

The talk was themed "Islamic Finance and Malaysia's Role".

"We will be engaging with the industry and the public for feedback on the laws which require harmonisation. Further details will be announced in due course," Muhammad said.

The deputy governor said the formation of the panel was also in consistent with Bank Negara's objectives to create an enabling environment that facilitates and accommodates the industry's development.

It also creates a clear and efficient system that preserves enforceability of Islamic financial contracts and a credible and reliable forum for settlement of legal disputes arising from Islamic financial transactions, he said.

Muhammad said the support provided by the legal fraternity to Islamic finance has been instrumental to the industry's progress.

Crafting legislation to facilitate the growth and development of Islamic finance requires dedication and skill, and the ties between lawyers, regulators, syariah scholars and industry practitioners, he said.

"Going forward, it remains crucial for this close collaboration to continue so that more pioneering progress can be achieved in paving the way towards greater international integration and expansion of the Islamic finance industry," he said.

Muhammad said legal practitioners should work together to create a network to foster its development.

"This might involve the setting up of a specific association of international groupings of Islamic finance legal practitioners working together towards harmonisation of practices at the international level," he added. ' Bernama


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