Establishment of the Shariah Supervisory Council
(1) The Authority may establish a Shariah Supervisory Council which shall be the authority for the ascertainment of Islamic law for the purposes of any business regulated or supervised by the Authority. (2) The Authority shall have the power to determine the terms of reference and the functions of the Shariah Supervisory Council. (3) The Shariah Supervisory Council may determine its own procedure.
Functions of the Shariah Supervisory Council
(1) The Shariah Supervisory Council shall have the following functions: (a) to ascertain Islamic law for the purposes of any business regulated or supervised by the Authority and issue a ruling upon reference made to it in accordance with section 9; (b) to advise on any Shariah issue relating to any business regulated or supervised by the Authority upon reference made to it in accordance with section 9; and (c) any other functions as may be determined by the Authority.
Power to make rulings and give advice
(1) A ruling or an advice shall be given by the Shariah Supervisory Council only upon reference made to it. (2) For the purposes of subsection (1), reference to the Shariah Supervisory Council shall be made by the Authority, a licensed entity, an entity regulated under this Act or a Shariah-compliant entity in a manner determined by the Authority. (3) Any ruling issued by the Shariah Supervisory Council pursuant to a reference under subsection (1) shall be binding on the Authority, such licensed entity, such entity regulated under this Act or such Shariah-compliant entity, as the case may be. (4) For the avoidance of doubt, any ruling made by the Shariah Supervisory Council under subsection (1) pursuant to a reference made by the Authority, a licensed entity, an entity regulated under this Act or a Shariah-compliant entity, shall not be binding on any other licensed entity, entity regulated under this Act or Shariah-compliant entity unless otherwise adopted by the Authority in a manner it deems fit. (5) If an advice is given by the Shariah Supervisory Council pursuant to subsection (1), the Authority, such licensed entity, such entity regulated under this Act or such Shariah-compliant entity, as the case may be, shall take into consideration such advice. (6) Any reference for a ruling or an advice of the Shariah Supervisory Council under this Act or any other laws shall be submitted to the Authority.
Appointment of members to the Shariah Supervisory Council
(1) The Authority shall appoint qualified persons as members of the Shariah Supervisory Council. (2) The Authority may, in addition to the members appointed pursuant to subsection (1), appoint persons who may not fulfil the requirement of qualified persons as to qualifications and expertise in Islamic commercial law or Islamic jurisprudence but who have knowledge or expertise in banking, finance, law, or any other related discipline as members of the Shariah Supervisory Council. (3) The members of the Shariah Supervisory Council shall be paid such remuneration and allowances as may be determined by the Authority from the funds of the Authority.
Reference by court or arbitrator in making decision
(1) Where in any proceedings relating to any business regulated or supervised by the Authority before any court or arbitrator in Malaysia, any question arises concerning a Shariah matter, the court or the arbitrator, as the case may be, may— (a) take into consideration any guideline, direction, advisory, notice or circular issued by the Authority pursuant to its powers under the Labuan Financial Services Authority Act 1996; or (b) refer such question to the Shariah Supervisory Council for its ruling. (2) Any ruling made by the Shariah Supervisory Council pursuant to a reference made under paragraph (1)(b) shall, for the purposes of proceedings in respect of which the reference was made, be taken into consideration by the court or arbitrator in arriving at a decision.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).