The Islamic finance practice is an extension to the established Banking and Finance practice of the firm, whereby clients are advised on the principles of Shariah in relation to Islamic finance in Malaysia.
Recognition
It is noteworthy that the Islamic finance practice achieved a ranking in the 2024 edition of the reputable legal publication The Legal 500 Asia Pacific. Of even more significance is the fact that the annual In-House Community survey, conducted among more than 17,000 in-house counsel members in China, Hong Kong, Singapore, South Korea, Philippines, Vietnam, UAE, Thailand, Malaysia and India, named the firm as an “IHC: Law Firm of the Year, 2023” for Islamic Finance.
Services
Shariah compliance is critical in Islamic finance. Our firm-wide experience and knowledge with expertise in both Islamic finance and conventional banking practice have equipped us with the relevant knowhow in providing our clients with sound, creative and comprehensive legal advice and solutions.
Our work in the realm of Islamic finance legal advice includes advising on:
- Regulatory compliance for Islamic financial institutions (IFI) under the Islamic Financial Services Act 2013, Financial Services Act 2013; Hire-Purchase Act 1967; Moneylenders Act 1951 and other relevant statutes;
- Regulatory compliance for development financial institutions (DFI) under the Development Financial Institutions Act 2002;
- Structuring of Islamic finance products which entails drafting and reviewing of banking security documents as well as advising on banking law, company law and land law;
- Takaful related matters;
- Islamic capital market which includes crowdfunding and securities under the Capital Markets and Services Act 2007;
- Debt restructuring matters;
- Foreign exchange control matters;
- FinTech and digital assets matters.
We have recently seen an influx of briefs related to Shariah-compliance advisory and drafting exercises involving:
- the rectification of Shariah non-compliant events which translates to recognition of significant income to the relevant Islamic financial institution;
- the structuring of novel Islamic products which aim to provide an alternative to the common Commodity Murabahah product in the Malaysian Islamic finance industry.
In regard to FinTech, we have been appointed to advise two of the five new digital banks, specifically, the two banks that will offer Islamic finance products under the Islamic Financial Services Act 2013. We have also been actively advising on the regulatory and governance aspects of Islamic digital banking which include the interpretation of various guidelines published by Bank Negara Malaysia.
Quite apart from advisory work, the firm is also well able to handle disputes arising from Islamic finance cases, being firmly entrenched as a leading dispute resolution firm, especially in respect of finance-related litigation and has years of experience in Islamic finance debt recovery.
Upon request, the team gives training, seminars and talks on Islamic finance and Shariah governance to boards of directors and executives from financial institutions, Islamic financial institutions, Shariah-compliant companies as well as companies that intend to be Shariah-compliant.
