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Dealing with unlawful sources of fund among Islamic banks in Malaysia: finding from the practitioners’ perspective

Ibrahim, Badruddin and Che Mohd Salleh, Marhanum and Mohd, Azizah and Laeba, Muhammad (2018) Dealing with unlawful sources of fund among Islamic banks in Malaysia: finding from the practitioners’ perspective. In: 7th International Conference on Law And Society (ICLAS 7), 11th-13th April 2018, Kota Kinabalu, Sabah. (Unpublished)

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This study examines the issue of dealing with unlawful sources of fund among Islamic Banks in Malaysia from the practitioners’ perspective. It investigates the practice of the bank in Malaysia in dealing with unlawful sources of fund with respect to accepting deposit for safe keeping and investment and providing financial facilities to customers whose incomes come from unlawful sources. This is regardless whether the source of fund is wholly unlawful or the mixing between lawful and unlawful. Quantitative methodology is adopted to collect data among the industry practitioners those having direct involvement with the Islamic banks mainly officers of Shari’ah department, Shari’ah committee, and also related stakeholders of Islamic banks. Based on simple descriptive analysis, it is found that majority of the respondents have similar view that when the sources of fund is deemed unlawful, the bank cannot accept any deposit, investment, or give financing to the customers. With respect to the mixture sources of fund or activities, lawful and unlawful, it should not be restricted to receive the fund either for safe keeping, investment, or payment of financing. It is also confirm that the bank have right to investigate the sources of fund of the customers whether it is derived from Shari’ah compliant, non-Shari’ah compliant, or a mixture between the two.

Item Type: Conference or Workshop Item (Slide Presentation)
Additional Information: 2245/65855
Uncontrolled Keywords: Unlawful sources of fund, deposit for safe keeping, investment, financing,Islamic Bank
Subjects: B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc > BP1 Islam > BP173.75 Islam and economics
H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics
H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
K Law > KBP Islamic Law > KBP1 Islamic law.Shariah.Fiqh
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Ahmad Ibrahim Kulliyyah of Laws
Ahmad Ibrahim Kulliyyah of Laws > Department of Islamic Law
Kulliyyah of Economics and Management Sciences
Depositing User: Dr Badruddin Ibrahim
Date Deposited: 26 Sep 2018 17:02
Last Modified: 26 Sep 2018 17:03
URI: http://irep.iium.edu.my/id/eprint/65855

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