A critical analysis on the practices and implementation of the Islamic Financial Services Act 2013 in Malaysia: Some observations from bankers and shariah scholars

The Islamic banking and finance industry has gained popularity all over the world.Within this context, the development of the industry could very well owe to the constitutional legal framework governing the specified jurisdiction. Such framework includes the ruling authority, the governmental functionaries, the Shariah supervisory bodies, the fatwa issuing bodies as well as the judiciary.This paper aims to highlight the background of the recent Islamic Financial Services Act 2013.The analysis is tackled along the lines of the background and the constitutional frameworks of the country, the initiatives introduced by the government for the development of Shariah compliance within the Islamic banking and finance fraternity, as well as the relevant organs in carrying out the audit exercises over the Islamic banks and financial institutions in Malaysia.The paper attempts to elucidate the experience of bankers and Shariah practitioners in implementing the Islamic Financial Services Act 2013.The paper concludes by suggesting that the areas in the constitutional legal framework of the contemporary Islamic finance in Malaysia support the development of the Islamic banking and finance fraternity as with the Shariah compliance of the same.This is essentially so that Malaysia seeks to become the world's hub for promoting and carrying out of Shariah compliant products