Financial Services
Policy Document on Hajah and Darurah
Bank Negara Malaysia (“BNM”) has on 3 January 2024 released the Policy Document on Hajah and Darurah and its corresponding FAQ which will take effect on the 2 January 2025. The policy document is applicable to licensed Islamic banks; licensed takaful operators and professional retakaful operators; licensed banks and licensed investment banks approved to carry on Islamic banking business; and prescribed development financial institutions approved to carry on Islamic financial business. The policy document sets out the requirements and expectations on the application of hajah (needs) and darurah (dire necessity) by Islamic financial institutions in carrying out Islamic banking and takaful business, as follows:
- outline the definition, preconditions, the scope of prohibited application and parameters of different categories of hajah and darurah;
- clarify and strengthen the accountability of individuals responsible for the assessment, deduction as well as implementation of hajah and darurah; and
- outline the operational requirements and guidance in facilitating Shariah deliberation and decision-making on the application of hajah and darurah.