The Bank has issued the policy document on Rahn which is aimed to strengthen Islamic financial institution’s (IFI) practice with respect to end-to-end compliance with Shariah. This policy document sets out the Shariah and operational requirements in relation to the operationalisation of Rahn contract. The Shariah requirements highlight the salient features and optional practices of a valid Shariah contract to facilitate sound understanding of a particular contract by the IFI. The operational requirements outline the regulatory expectations with respect to the governance and oversight, structuring, risk management, business and market conduct as well as financial disclosure.
 
The policy document will take effect from 1 August 2019.
 
Details can be found in the following documents:

• Rahn
  • Response to Feedback

© Bank Negara Malaysia. All rights reserved.