The Legal Status Quo of Shariah Advisory Council in the Shariah Governance Framework for Islamic Banking in Malaysia Post Islamic Financial Services Act 2013

The Shariah governance framework for Islamic banking resulted from the enactment of Central Bank Act 2009 and Islamic Financial Services Act 2013. It is an important mechanism for ensuring compliance with the Shariah requirements in the operations of Islamic banking. In addition, it seeks to ensure the stability of the Islamic banking industry in Malaysia as well as increase the confidence of stakeholders. Shariah Advisory Council was established as the sole authoritative body in decisions making relating to Shariah issues in Islamic banking operation and facilities. In conjunction with that, the article will enhance the legal status quo of the Shariah Advisory Council after going through several phases of law. In achieving the objective of the article, the Shariah Governance Framework was analysed coherent with the requirements of Shariah compliance in banking operations. Besides, decisions of the courts and relevant legal amendments was examined in strengthened the legal status quo Syariah Advisory Council.