Judicial decisions

The court's decision is accepted as law in Malaysia must be a decision made by a judge of the
Federal Court, Court of Appeal and the High Court. The decisions of this court will usually
be are put in the form of a journal and a source of reference for judges, legal practitioners and
the public. The judges determination of a decision would refer to the principle of legal of the
previous. This principle is known as the doctrine of binding precedent or stare decisis
doctrine or the doctrine of Justice Binds. If there is no written law provisions of a matter, the
court shall apply the court's decision to a higher position.
In the banking and financial issues as the judiciary is the institution responsible for
determining the justice in case of any cases connected with the financial and banking issues.
The court will decide on issues related to banking, which involves issues of oppression and
fraud. The trial will use discretion of lawmakers from the highest court on the case. The
judiciary will decide, headed by a judge, which is usually from decisions of a case is based on
evidence that is systematically and decisively carried out. Usually banks issue will be debated
in the civil courts to determine justice. Theoretically, the law is made by the legislative body
like Parliament-trays and Dun. Court duty is only to provide interpretation of the law is
approved as in creating a new element in banking either approved to be implemented or not.
For example, the establishment of a Special Court Muamalat was established in February
2009 which aims to address issues related to Islamic Banking and Finance 1. Therefore, the
court is a source of law for banking issues in determining a problem occurs.

Islamic law
Islamic law applied only to those who are Muslims only. Federal Constitution empowers
states to implement Islamic law in every state, but is limited to matters of personal and family
only. Implementation of this law is referring to the source of the Quran, the Hadith and the
Sunnah which operated by the Islamic Religious Council. In this law, is responsible in
matters relating to the regulation which is based on Islamic law such as issuing a fatwa,
Handle endowment and give advice to the government or the Moslem community. There

1 Wawancara dengan Puan Maimoonah Binti Aid, Penolong Pendaftar Mahkamah

Tinggi Kuala Lumpur, Mahkamah Dagang 4, pada 25hb April 2010, bertempat di
pejabat beliau.

have enactments states made for regulating Islamic law. Cases concerning Islamic law are
heard in the Syariah Court.
Banking and finance is the foundation of economic movement which is a function of the
country's economic progress. Each bank or finance have regulations or laws that must be
adhered to in line with banking standards itself. Under an unwritten law that the law of Islam
is a source of banking regulations which set the rules for all banking activities are conducted
in compliance with predetermined rules as stated. In Malaysia, banking compliance is
controlled by Bank Negara Malaysia (BNM) and monitoring is carried out by the Syariah
Advisory Council (SAC) which is manifested in several banks in Malaysia. Shariah Advisory
Council will refer to an unwritten law if any discrepancies in connection with banking
matters involving Islam. The purpose of the Shariah Advisory Council is to monitor
compliance at each bank whether to comply with the rules or do not comply with regulations.
Shariah Advisory Council will oversee all banking activities both in terms of investment
services, insurance and product sales. For example, monitoring of investment activity in
which the service will comply with Islamic law as has been stated and do not have any
conflict of laws as an element of usury, gharar, and maisar. For example contract Shariah AlTawarruq which contract offered by Islamic banks which are contracts conforming Shariah
law which in a financing2. Contracts offered by Islamic banks in Malaysia clearly comply
requirements of Islamic law in the financing as offered by Bank Muamalat and Bank Islam.

2 Asmak, Ab Rahman, Shamsiah Mohammad & Iman Mohd Salleh. (2010). Bay
al-tawarruq dan Aplikasinya dalam Pembiayaan Peribadi di Bank Islam Malaysia
Berhad, 18(2), 333360