this role does not [ in any way ] substitute the function of the judiciary in upholding legal certainty. rather, the sacs support the courts – by providing predictability and uniformity in the interpretation of shariah rulings that are applicable to islamic financial business. unlike a scientific question, a shariah question can be answered by reference to at least four different schools of thoughts, all of which provide valid answers from a shariah perspective. having the sacs as central authorities for providing finality of shariah rulings – helps the court apply the rulings to the specific circumstances of a particular case with full certainty. this will then inform the final judgment by the courts. a clear process has been set out to facilitate judges, arbitrators and islamic financial institutions to refer matters which require the ascertainment of islamic law to the sacs for their ruling or advice. matters beyond the ambit of the sacs ’ authority will be left for the courts to adjudicate. the composition of the sacs, which includes former judges, ensures it functions well within the boundaries of its purview. to promote procedural legitimacy, efforts have been also directed towards ensuring that the reasoning of the sacs are well - documented and accessible to the public. other than the courts and the sacs, another important institutional arrangement for our path forward will be the financial regulators. in particular, bank negara malaysia and the securities commission will continue to play a proactive role in identifying pertinent shariah issues that need to be clarified for the domestic market. by the end of this year, bank negara malaysia will have completed a compendium of regulatory standards to provide clarity on the shariah and operational requirements for 14 islamic finance contracts. this endeavour began in 2013, and incorporates the interpretation of the sac. the task for the regulators is to come up with similar 3 / 4 bis central bankers'speeches standards in the future – especially as the market ventures into novel and more innovative approaches. this will provide an invaluable resources in helping islamic financial institutions and their lawyers in structuring islamic finance products as well as identifying the necessary legal documentation. individual excellence at the individual level, the promotion of legal certainty will require a strong base of legal and islamic finance professionals. as the domestic industry and global market for islamic finance grows, so must our talent pool. lawyers involved in product structuring, for example, can provide value - added advice to their

abdul rasheed ghaffour : practical aspects of dispute resolution in islamic finance facilities remarks by mr abdul rasheed ghaffour, deputy governor of the central bank of malaysia ( bank negara malaysia ), at the association of islamic banking institutions malaysia ( aibim ) law seminar on " practical aspects of dispute resolution in islamic finance facilities ", kuala lumpur, 14 november 2017. * * * “ past, present and future : legal certainty and islamic finance in malaysia ” it is my honour to join all of you today in exploring this interesting topic on the practical aspects of dispute resolution in islamic finance. this seminar marks another significant step in fostering dialogue between islamic financiers, shariah scholars and the legal fraternity. gatherings such as this serve as an important platform for islamic finance practitioners to develop a better grasp of legal issues, and for lawyers to gain a keener sense of islamic finance. i am encouraged to see the association of islamic banking institutions malaysia ( aibim ) taking the lead in advancing this mission. disputes in business transactions have been around for as long as commerce itself. it is therefore no surprise that we come across judges and lawyers very early on in human history. earlier than bankers – and definitely long before we see the first central banker. disputes are bound to happen. one party may not be able or willing to honour their obligations. the other party may be dissatisfied with how an obligation is performed. still, there may be a fundamental disagreement between the parties about what was agreed in the first place. it is the inevitability of disputes that makes the existence of dispute resolution systems so universal. dispute resolution in islamic finance is gaining more attention these days. i would take this to be a good sign. in a legal system, disputes may be viewed as an indicator of vigour rather than weakness – so long as they are resolved effectively and efficiently. the common law legal system is exemplary in this regard. today, common law systems are the most widespread in the world, in terms of gdp generated under these jurisdictions. the large volume of commercial disputes resolved by these jurisdictions are a reflection of the widely - accepted strength of the common law legal system in providing certainty to business dealings. today, legal certainty is widely said to be central to the rule of law. it is important that the law be accessible, clear and predictable. people should be assured that questions of legal right and liability will be determined by rules that meet these characteristics. this is not just crucial