Islamic Financial Services Act 2013 (Act 759) - As at 15/10/2025

The Islamic Financial Services Act 2013 (IFSA) is an act of the Malaysian Parliament that regulates the Islamic financial services industry in Malaysia. The IFSA came into force on 30 June 2013 and replaced the Islamic Banking Act 1983. The act provides a regulatory framework for the establishment, regulation, and supervision of Islamic financial institutions, Islamic financial markets, and Islamic financial instruments. 

1. Islamic Financial Services Act 2013 (Act 759): This act provides the legal framework for the regulation of Islamic financial services in Malaysia. It covers a wide range of areas, including the establishment and operation of Islamic financial institutions, the licensing and supervision of these institutions, the regulation of Islamic financial products and services, and the enforcement of regulatory compliance.
2. Islamic Financial Services (Licencing) Regulations 2013: These regulations set out the requirements for the licensing of Islamic financial institutions. They cover areas such as the application process, the capital requirements for Islamic banks, the minimum capital ratios, and the fit and proper criteria for directors and senior management.
3. Islamic Financial Services (Risk Management) Regulations 2013: These regulations provide guidance on the management of risk in Islamic financial institutions. They cover areas such as risk management policies and procedures, the identification and assessment of risks, the monitoring and reporting of risks, and the role of the board of directors in risk management.
4. Islamic Financial Services (Corporate Governance) Regulations 2013: These regulations set out the corporate governance requirements for Islamic financial institutions. They cover areas such as the composition and responsibilities of the board of directors, the appointment and functions of the board committees, the role of the senior management, and the disclosure and transparency requirements.
5. Islamic Financial Services (Capital Adequacy) Regulations 2013: These regulations specify the capital adequacy requirements for Islamic financial institutions. They cover areas such as the definition of capital, the calculation of risk-weighted assets, the determination of minimum capital requirements, and the maintenance of capital buffers.
6. Islamic Financial Services (Shari'ah) Regulations 2015: These regulations provide guidance on the Shari'ah compliance requirements for Islamic financial institutions. They cover areas such as the establishment and management of Shari'ah supervisory committees, the review and approval of Islamic financial products and services, and the reporting of Shari'ah non-compliance.
7. Islamic Financial Services (Dispute Resolution) Regulations 2015: These regulations establish a dispute resolution framework for Islamic financial institutions. They cover areas such as the establishment and operation of a dispute resolution body, the procedures for the resolution of disputes, and the enforcement of dispute resolution decisions.
8. Islamic Financial Services (Prohibition of Financial Incentives) Regulations 2016: These regulations prohibit the provision of financial incentives by Islamic financial institutions to their employees, agents, or third parties for the sale of Islamic financial products and services.
9. Islamic Financial Services (Netting of Islamic Financial Contracts) Regulations 2017: These regulations provide for the netting of Islamic financial contracts for the purposes of determining the net payment obligations between parties in the event of default or termination of the contracts.
10. Islamic Financial Services (Framework for Islamic Liquidity Management) Regulations 2020: These regulations establish a framework for the management of Islamic liquidity in Malaysia. They cover areas such as the issuance of Islamic liquidity instruments, the management of Islamic liquidity facilities, and the reporting and disclosure requirements.

In summary, the regulations and orders under the IFSA provide a comprehensive regulatory framework for the Islamic financial services industry in Malaysia. They cover areas such as licensing, risk management, corporate governance, capital adequacy, and Shari'ah compliance.