The Process of Shariah Assurance in the Product Offering : Some Important Notes for Indonesian and Malaysian Islamic Banking Practice

Shariah compliance is one of the important legal and fiduciary duties of Islamic banks. Its importance is growing in the wake of the challenging business environment and the increasing needs for innovative products and instruments faced by Islamic banks. The present paper seeks to analyze the process and procedures for Shariah assurance in the product offering in Islamic banking sector in Indonesia and Malaysia. Starting with the theoretical overview of the Shariah assurance, the regulatory framework designated to cater such processes and procedures are then mapped and evaluated. Having this at hand, practical implementations are discussed to draw any distinctive features in both jurisdictions. Lastly, suggestions are presented to be proportionally adopted for the purpose of achieving better process and procedures of Shariah assurance in the product offering in Islamic banking sector in both, Indonesia and Malaysia