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Bank Negara Malaysia Shariah Advisory Council — Tawarruq ruling

Bank Negara Malaysia — Shariah Advisory Council (SAC)

What this source says

The Shariah Advisory Council of Bank Negara Malaysia (the highest Shari'ah authority for Islamic finance in Malaysia, established May 1997) has issued rulings on tawarruq and bai' inah. At its 199th meeting (26 November 2019) the SAC ruled that tawarruq executed via Straight-Through Processing is permissible subject to conditions on the sequence of transactions and the existence of a genuine underlying asset.

Wording inside quotation marks is quoted from the source. The rest is this notebook’s summary of it — read the original before relying on it.

Provenance

Source
Bank Negara Malaysia, Shariah Advisory Council, 199th meeting (26 Nov 2019)
School / basis
Comparative
Added
2026-06-03
Trust
A position recorded from a named, published source — reported accurately, not independently adjudicated.

Compiler’s note

Paraphrase of the documented SAC ruling (not a verbatim quote of its text).

Topics

islamic-financetawarruqstandardsstructuresmalaysia

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