Bank Negara Malaysia policy document on the broader application of ta`awun (mutual assistance) in takaful by the end of this year,
The policy document will outline Shariah and regulatory requirements aimed at unlocking the full potential of takaful in fostering financial resilience and inclusion, in line with the objectives of maqasid Shariah, BNM said in a statement.
BNM released the statement outlining the outcomes of the Sixth Centralised Shariah Authorities Forum (CSAF) that it hosted in Kuala Lumpur on 15 October.
The policy document is among the key outcomes of the CSAF Forum.
BNM Shariah Advisory Council chairman Dr Ashraf Md Hashim chaired the meeting, which gathered more than 50 delegates from 10 countries as well as international Islamic standard-setting bodies.
Central bank of the UAE
The meeting also discussed recent legal reforms that recognise the takaful fund as a separate legal entity, noting that the Central Bank of the United Arab Emirates plans to strengthen the takaful fund’s governance framework to ensure transparency, accountability, and Shariah compliance. The key mechanism to strengthen oversight include the role of the board of trustees and the establishment of a fund charter, designed to safeguard the interests of participants and beneficiaries.
BNM also said the meeting accepted the terms of reference for the CSAF platform, marking a significant step in strengthening the governance structure, clarifying roles and responsibilities and enhancing coordination among member authorities to achieve shared strategic objectives.