Malaysia and the Centralized Model of Islamic Finance Regulation

UAE and Malaysia editor Paul Lee's commentary examines Malaysia as an example of a centralized model of regulating Sharīʿah compliance in Islamic finance. "When parties seek to engage in Islamic finance in a jurisdiction, that jurisdiction must make a determination as to whether, and how, to regulate Islamic finance. Beyond those issues arising in conventional finance, Islamic … Continue reading Malaysia and the Centralized Model of Islamic Finance Regulation

Circulaire Bank al-Maghrib

This is a memorandum (circulaire) issued by the shari'a board of the Central Bank of Morocco (Bank al-Maghrib) in January 2017. The document contains fatwās pertaining to Islamic financial instruments such as murābaḥa and regulations concerning its practice and penalties. See document and see the interview with a sharīʿa auditor at Dar Assafaa.

Islamic Finance: New Developments in Morocco’s Sharīʿa-Compliant Banking

Interview conducted by Ari Schriber, Morocco Editor Nour-Eddine Qaouar is a PhD Candidate in the Faculty of Letters and Humanities at Muhammad V University (Rabat, Morocco) where he studies the applicability of finance-related fatwās from classical sharīʿa to contemporary questions of Islamic finance. He is also Sharīʿa Auditor at Dar Assafaa, the Islamic window of … Continue reading Islamic Finance: New Developments in Morocco’s Sharīʿa-Compliant Banking

Islamic Law in U.S. Courts: Vinewood Capital v. Dar al-Maal al-Islami Trust (5th Cir. 2008)

We use real cases to show how U.S. Courts consider Islamic law. Like any other legal framework, Islamic law defines and dignifies the institutions people hold dear, including marriage and finance. What do American judges do when adjudicating a case in which at least one party primarily understands these institutions and their protections through Islamic … Continue reading Islamic Law in U.S. Courts: Vinewood Capital v. Dar al-Maal al-Islami Trust (5th Cir. 2008)

Review :: Fadel on the Function of the “Interest Ban” in Islamic Finance

Student editor Alicia Daniel reviews Mohammad H. Fadel, Ribâ, Efficiency and Prudential Regulation: Preliminary Thoughts, 25 Wisconsin Journal of International Law 655 (2008). Islamic finance creates financial products specifically aimed at Muslims that are sharīʿa compliant. Many scholars have condemned Islamic finance for condemning ribā (interest) on the one hand, particularly where usurious, but then many others have … Continue reading Review :: Fadel on the Function of the “Interest Ban” in Islamic Finance

The Dubai International Financial Centre and a Systems-Based Model for the Regulation of Islamic Finance

UAE editor Paul Lee explains how the Dubai International Financial Centre's systems-based model is one solution for creating a sharīʿa-compliant financial system. The Dubai International Financial Centre (“DIFC”) is a parallel legal system to the legal systems of the Emirate of Dubai and the UAE as provided for by a series of federal and local laws.[1] … Continue reading The Dubai International Financial Centre and a Systems-Based Model for the Regulation of Islamic Finance

The Need for an Islamic Bankruptcy Code

Student editor Esther Agbaje (HLS ’17) suggests that sukuk (commonly called Islamic bonds) are insufficient to handle bankruptcy in financial systems operating with respect to Islamic law, or sharīʿa compliance. Banks and other financial institutions or municipalities that issue sukuk intend for these instrument to organize debt and therefore to be insulated from default. This idea seeks to implement the Islamic law financial principle of profit/loss sharing, designed to … Continue reading The Need for an Islamic Bankruptcy Code

STANDARDS:: Auditing and Accounting Organisation for Islamic Financial Institutions’ (AAOIFI) Sharīʿa Standards for Financial Institutions (2010)

In 2007, the Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) considered about 85% of sukuk (commonly called Islamic bonds) to be non-sharīʿa-compliant. In 2010 they released these comprehensive guidelines on Islamic finance, including a section on sukuk (pg. 303), which outlines factors to consider when creating Islamic bonds. One such factor is industry, … Continue reading STANDARDS:: Auditing and Accounting Organisation for Islamic Financial Institutions’ (AAOIFI) Sharīʿa Standards for Financial Institutions (2010)

The Long Shadow of England’s Privy Council Cast on the Islamic Law of Trusts in British India

South Asia editor Zubair Abbasi surveys the influence of England’s Privy Council – also known as the British Judicial Committee of the Privy Council – on awqāf (Islamic endowments, or trusts). As the highest court of appeal in the British Empire, "[t]he Privy Council contributed towards the development of several legal principles in Islamic endowment law," in attempts to standardize law throughout the colonies. Its jurisprudence in turn … Continue reading The Long Shadow of England’s Privy Council Cast on the Islamic Law of Trusts in British India

CASE: Abul Fata Mahomed Ishak v Russomoy Dhur Chowdury (1894)

This case exemplifies the complex influence of the British Privy Council on Islamic law (called “Muhammadan law”) in India during colonial rule. While the British rulers instituted their legal system in India, family and inheritance law often remained under the purview of the exponents of Islamic law. This case demonstrates the political and legal complexities … Continue reading CASE: Abul Fata Mahomed Ishak v Russomoy Dhur Chowdury (1894)