Shari'ah Non-compliance Risk Management and Legal Documentations in Islamic Finance

Glossary

This glossary is according to the glossary of Sharī`ah Advisory Council of BNM.

Akad istithaq Contract of guarantee.

Akad isytirak Contract of partnership, such as mudarabah and musyarakah.

Akhz al-ajr `ala al-jah Charging fee for someone’s reputation.

Akhz al-ju`l `alaruqyah min al-Quran Charging fee for treatment/medication using verses of al-Quran.

Al-`adah muhakkamah Common practice as basis of the ruling.

Al-ajl Deferment.

Al-bai` Sale contract.

Al-bai` wa al-salaf Sale contract with credit term.

Al-ijarah thumma al-bai` Lease contract followed by ownership of asset through a sale contract.

Al-jam`ubaina `aqd al-qardhwa `aqd al-mu`awadhah Combination of a loan contract and an exchange contract.

Al-muqasah al-ittifaqiyyah Offsetting by mutual agreement of contracting parties.

Al-muqasah al-jabariyyah Offsetting by order of the authority.

Al-naqdyalid al-naqd Money begets money.

Al-wa`d bi al-tamlik Promise to own or acquire ownership.

Bai` `inah Sale contract followed by repurchase by the seller at a different price.

Bai` dayn Sale of debt.

Bai` al-dayn bi al-dayn Sale of debt with debt.

Bai` sarf Sale of currency.

Bai` al-usul bi al-khasm Sale of asset at discount.

Bai` al-kali’ bi al-kali’ Refer to bai` al-dayn bi al-dayn.

Bai` bithaman ajil Sale contract based on deferred payment at certain price.

Bai` mu’ajjal Refer to bai` bithamanajil.

Bai` muzayadah Sale contract based on bidding or auction.

Bai` salam Sale contract based on order of a certain asset with certain ...