Kafalah

Kafalah

(Shariah Requirements And Optional Practices)

Exposure Draft

Issuance date: 6 December 2013

BNM/RH/CP 028-4

Islamic Banking and Takaful

Department

Kafalah (Shariah Requirements and

Optional Practices)

Exposure Draft

Table of Contents

PART A

Overview ....................................................................................... 4

1. Objective.................................................................................. 4

2. Applicability.............................................................................. 4

3. Legal provisions....................................................................... 4

4. Effective date ........................................................................... 4

5. Interpretation ........................................................................... 5

6. Related legal and policy documents ........................................ 6

PART B

Nature of kafalah .......................................................................... 7

7. Nature ...................................................................................... 7

PART C

Components of kafalah ............................................................... 8

8. Contracting parties .................................................................. 8

9. Subject matter of kafalah ......................................................... 9

PART D

Management of kafalah ............................................................. 10

10. Rights and responsibilities ..................................................... 10

11. Imposition of fee or charges on kafalah ................................. 11

12. Recourse and Recovery ........................................................ 11

PART E

Arrangement of kafalah with another contract........................ 13

13. Arrangement of kafalah with assurance................................. 13

PART F

Dissolution (fasakh) and completion (intiha’) of kafalah

contract...