38 research outputs found

    The entitlement of the Bayt al-Mal to a muslim praepositus’ estates; an analysis on the right of a Muslim to bequeath without obtaining a consent from the Bayt al-Mal

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    The bayt al-mal or public treasury was established during the reign of Umar al- Khattab, the second rightly-guided Caliph. It originated during the Prophet Muhammad s.a.w. time but not as an institution. Its main function is to administer wealth contributed and acquired by Muslims through various sources. Under the Islamic law of succession, the bayt al-mal may constitute a recipient of a deceased Muslim’s estate. It would exhaust the estates after being allotted to quranic heirs, in the absence of any asabah. A question arises in what capacity the bayt al-mal receives the property, as an heir or because of no ecipient. Moreover, is a Muslim who leaves behind no heir, allowed to bequeath all his properties to whomever he wishes without obtaining a prior consent from the bayt al-mal? This article examines the entitlement of the bayt al-mal and the possibility of a Muslim to bequeath all his properties without the consent of the former

    Takaful (Islamic insurance) benefit: ownership and distribution issues in Malaysia

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    This paper aims at investigating the ownership of the Takaful benefit and the issues of hibah in nomination. The focus is made solely on the Family takāful because this type of policy is singularly related to death. In this regard, the question is raised as whether the money paid by the takāful operator on the death of the participant (death benefit) before the policy matures constitutes the participant’s estate or not, and secondly over the validity of making a conditional hibah of that takaful policy to a nominee as a sole beneficiar

    Is a Nominee a Trustee or a Beneficiary? A Study on the Islamic Legal Maxim “In Contracts Effect is Given to Intention and Meaning and not Words and Forms” and Its Relevance to the Nomination Concept and Practice in the Administration of a Muslim’s Estate in Malaysia.

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    In a sale transaction, parties to the contract are allowed to pronounce an offer using words which do not indicate a sale. He may use the word such as hibah in the offer as long as the nature of the contract is exchange. Nomination is a means to expedite the process of the administration of a deceased Muslim’s estate. It is commonly practiced in financial institutions such as insurance and takaful companies, Pilgrimage Fund and Employee Provident Fund. An issue arises as regard to the status of nominee, as a trustee or beneficiary. A fatwawas issued by the National Fatwa Committee in 1973 stating that a nominee acts only as a trustee. However, the decisions of the civil courts and the Shari`ah court show that a nominee could be a beneficiary. This research is undertaken to examine the Islamic legal maxim and its relevance to the principle of nomination in Malaysia. Here, even though it is a nomination form and the nominee appointed is merely a trustee according to the 1972 fatwa, the wordings of the nomination might indicate a different connotation

    Shariah risk management process for Islamic financial institution in the context of shariah governance framework 2010

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    Shariah compliance is the backbone of Islamic banks. As an institution established within the ambit of Shariah, Islamic banks are expected to ensure that their aims, activities, operations and management adhere to the Shariah principles and values. Failure to comply with Shariah, will expose Islamic Financial Institutions (IFIs) to Shariah non-compliance risk. Subsequently, it is an essential duty of the IFIs to manage Shariah risk properly. In order to effectively manage the risk vulnerability of the IFIs, proper measures for risk management have been put in place in different frameworks that are either domestic or international based.In the Malaysian context, IFIs are guided by relevant regulations such as the Shariah Governance Framework 2010, IFSB principles and Islamic Financial Services Act 2013 with regards to Shariah risk management. This research examined the regulatory requirements of the Shariah risk management process for Islamic financial institutions that operate in Malaysia, in the context of the Guidelines on Shariah Governance Framework 2010 issued by the Central Bank of Malaysia. The paper discusses the concept of “risk”, “Shariah risk” and “Shariah non compliant risk” in the context of Islamic Financial Institutions and also examines the process adopted by the Malaysian IFIs in managing the Shariah risk. The hypotheses that the paper seeks to establish are that there are differences between the concept of Shariah risk and Shariah non-compliant risk; and that the Shariah risk management process adopted by the IFIs are different than the conventional risk management process due to the unique features and requirements of the IFIs

    Islamic wealth management: is the nominee a trustee or beneficiary? An analysis on the application of the nomination instrument in the disposition of property in Malaysia from the perspective of Islamic law

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    Nomination is originally a means to expedite the process of the administration of a deceased Muslim’s estate. With nomination, a nominee therefore has a legal right to claim the property of the deceased from the relevant financial institution such as Insurance companies, Takaful companies, Tabung Haji and Employee Provident Fund. However, there is a question pertaining to the status of the nominee whether he is a trustee or a beneficiary. The fatwā issued by the National Fatwa Committee suggest that a nominee acts only as a trustee. However, looking into the decisions of the civil courts as well as the Shariah court, a nominee could be a beneficiary. This research is undertaken to examine the nature of the nomination process and to identify any similarities and differences between nomination, wasiyyah and hibah according to the Islamic law in order to determine whether a nominee is a trustee or a beneficiary