Our lawyers are well versed on the Islamic economic and banking system.
The Firm has a stringent checklist to make certain that the documents comply with the principles of Islamic banking recognized in Malaysia, and ensuring that the transactions are valid;
- The goods / assets involved must be “halal” and the contract must be consistent with Islamic rulings, namely; free from riba, must be of value, No-gambling, “Gharaf” free and also must be based on the accepted contract law in Malaysia.
- To ensure that financing agreement under the “Musharakat Mutanaqisah” is on equity share of the asset and on diminishing partnership basis.
- To ensure correct Islamic concepts are applied during the transaction, for example, avoid using the terms such as interest, lending, Loan and Borrower.