Recent developments in global standards and financial inclusion Global standards developed after the Global Financial Crisis were designed to address the financial stability and integrity issues that came to the fore in developed countries. Many of these issues involved the activities of Global Systemically Important Financial Institutions. The effects of these standards on financial inclusion, such as the impact on smaller financial institutions in developing countries most likely were not taken into consideration. Fortunately, Standard-Setting Bodies have now recognised the principle of proportionality, emphasising on the balance between objectives of financial stability, integrity and inclusion. However, the real challenge lies in implementing proportionality in practice. If principles are not implemented in a proportionate manner, there could be unintended consequences for financial inclusion. For example, despite the Financial Action Task Force’s guidance on the implementation of a risk-based approach to Anti Money Laundering/ Counter Terrorist Financing regulation, we have seen large-scale de-risking by international banks, where banks have indiscriminately terminated businesses in certain segments rather than on a case-by-case basis, or based on proper assessments of risk. In particular, international banks have exited entire areas of businesses, such as relationships with Money Transfer Operators, resulting in Money Transfer Operators no longer being able to provide remittances services for customers, mostly migrant workers remitting money to low-income family members. This indiscriminate de-risking deprives poor families of vital financial resources to live healthily, support and educate their children for a better future.

Strengthening the role of Shariah scholars The Islamic financial landscape today has undergone various transformations and progress over the last 10 years. This transformation can be testified in the increase of global banking assets that had reached nearly USD1.5 trillion, total outstanding sukuk amounting to USD295 billion, Islamic fund assets amounting to USD76 billion as well as the takaful contributions of USD21 billion (Source: IFSB: 1H 2014). In addition, there has been a marked increase in the participation from non-Muslim jurisdictions in Islamic finance, particularly in sukuk issuances, reflecting the increasingly positive reception of Islamic finance among the global community. The sukuk instrument, in particular, is among the most innovative instruments and favoured by governments and multinational corporations. In response to these developments, the role of and the expectation on Shariah scholars will be more challenging in finding solutions to emerging new Shariah issues that require immediate responses from the Shariah fraternity. To me, changes in the Islamic financial landscape should be viewed as a golden opportunity for the Shariah experts to demonstrate the dynamism of the Islamic religion as perpetually modern and evolving through time. Therefore, it is my hope that the role of the Shariah scholars could be further enhanced and not confined solely to only ensuring and monitoring the Shariah compliance aspects. In relation to this, I am also of the opinion that researches and thorough deliberations on Shariah need to consider other fields of disciplines in order for the ijtihad (reasoning) or Shariah decisions to be comprehensive, inclusive and practical.