View - ResearchGate
View - ResearchGate View - ResearchGate
The Paradox Struggle Between Islamic and Conventional Banking Systems adjudication of disputes belonging to Islamic economic matters, including Islamic banking. 1 This expansion arguably enhanced the status and authority of Religious courts as a dispute settlement institution within the judiciary system in Indonesia. However, this turns out as another challenge for Religious courts due to the fact of the complexity of Islamic economics matter, and needed more time to be properly absorbed and understood. Therefore, the only sensible solution for the matter relative to lack of education of Islamic matters in civil courts would be to educate them or call experts to give evidence in the matters relating to Islamic Banking. Islamic Commercial matters are indeed technical matters and hence the complexity on the matters can only be explained by an expert. And there is nothing discreditable in calling an expert. Islamic Finance and Alternative Dispute Resolution Dispute resolution in the Islamic Banking sector has emerged; however the extent to as which it serves as an alternative to litigation is questionable. Islamic finance disputes can be referred to arbitration by specialists in many countries but many Malaysian cases still go court. In Bahrain, such cases have mostly gone to dispute resolution committees staffed by judges and specialized central bank officials. Where as in Indonesia the arbitrators lack ample knowledge of Islamic commercial matters and this inhibits their capacity to solve the disputes in issue. In Malaysia, under the auspices of the Malaysia International Islamic Finance Centre which was setup in 2006, the International Shariah Research Academy (ISRA) was established in March 2008, with a mandate on researching Shariah issues on Islamic finance, with special focus on contemporary matters. One project currently 1 Gemala Dewi, Aspek-Aspek Hukum dalam Perbankan dan Perasuransian Syariah di Indonesia, (Jakarta, Kencana, 2004), p. 104 220
Aishath Muneeza, Ismail Wisham, Rusni Hassan, International Islamic University Malaysia undertaken by the ISRA includes avenues in alternative dispute resolution in Islamic banking. The KLRCA caters specifically to disputes on Islamic bank and finance and employ the use of Rules For Arbitration Of Kuala Lumpur Regional Centre For Arbitration (Islamic Banking And Financial Services). The Rules by itself holds itself out as “applicable for the purposes of arbitrating any commercial contract, business arrangement or transaction which is based on Shariah principles” and propose a model arbitration clause for contracts 1 , with additional prerogatives offered as to the number of arbitrators, law applicable etc. One drawback on the matter might be taken as Rule 1 of the aforementioned Rules which state that only in cases where the disputed agreement in writing calls for the auspices of the KLRCA, would these rules apply. In Bahrain's Ministry of Justice signed an agreement with the American Arbitration Association (AAA), to establish a new Alternative Dispute Resolution (ADR) centre in Bahrain to be known as the Bahrain Chamber for Dispute Resolution (BCDR). This agreement was signed in August 2009. Having recently enacted legislation which cements the position of the BCDR in domestic law and establishes Bahrain’s reputation as a neutral venue for multinational companies seeking to conduct international arbitrations. Indonesia faced a general lack of a competent body for resolution of banking disputes. As have been discussed, the Indonesian Council of Religious Scholars to set up BAMUI (Indonesian Muamalat Arbitration Body) in 1993. However poor knowledge of the Islamic law of arbitration crippled the process in Indonesia and the fact that a dispute cannot be arbitrated unless there is an arbitration agreement between the parties (i.e., the bank and customer) did not help the situation at all. Consequently, disputes brought for 1 “Any dispute, controversy or claim arising from Islamic banking business, takaful business, Islamic financial business, Islamic development financial business, Islamic capital market products or services or any other transaction business which is based on Shariah principles out of this agreement/contract shall be decided by arbitration in accordance with the Rules for Arbitration of Kuala Lumpur Regional Centre for Arbitration (Islamic Banking and Financial Services)”. 221
- Page 76 and 77: Revisiting the MDG’s: Exploring a
- Page 78 and 79: Revisiting the MDG’s: Exploring a
- Page 80 and 81: Revisiting the MDG’s: Exploring a
- Page 82 and 83: Revisiting the MDG’s: Exploring a
- Page 84 and 85: The Eco-friendly Tharu Tribe: A Stu
- Page 86 and 87: The Eco-friendly Tharu Tribe: A Stu
- Page 88 and 89: The Eco-friendly Tharu Tribe: A Stu
- Page 90 and 91: The Eco-friendly Tharu Tribe: A Stu
- Page 92 and 93: The Eco-friendly Tharu Tribe: A Stu
- Page 94 and 95: Journal of Asia Pacific Studies ( 2
- Page 96 and 97: The Paradox Struggle Between Islami
- Page 98 and 99: The Paradox Struggle Between Islami
- Page 100 and 101: The Paradox Struggle Between Islami
- Page 102 and 103: The Paradox Struggle Between Islami
- Page 104 and 105: The Paradox Struggle Between Islami
- Page 106 and 107: The Paradox Struggle Between Islami
- Page 108 and 109: The Paradox Struggle Between Islami
- Page 110 and 111: The Paradox Struggle Between Islami
- Page 112 and 113: The Paradox Struggle Between Islami
- Page 114 and 115: The Paradox Struggle Between Islami
- Page 116 and 117: The Paradox Struggle Between Islami
- Page 118 and 119: The Paradox Struggle Between Islami
- Page 120 and 121: The Paradox Struggle Between Islami
- Page 122 and 123: The Paradox Struggle Between Islami
- Page 124 and 125: The Paradox Struggle Between Islami
- Page 128 and 129: The Paradox Struggle Between Islami
- Page 130 and 131: The Paradox Struggle Between Islami
- Page 132 and 133: Through Americanized Japanese Women
- Page 134 and 135: Through Americanized Japanese Women
- Page 136 and 137: Through Americanized Japanese Women
- Page 138 and 139: Through Americanized Japanese Women
- Page 140: Through Americanized Japanese Women
- Page 143 and 144: Women and Work-Family Interface: In
- Page 145 and 146: Women and Work-Family Interface: In
- Page 147 and 148: Women and Work-Family Interface: In
- Page 149 and 150: Women and Work-Family Interface: In
- Page 151 and 152: Women and Work-Family Interface: In
- Page 153 and 154: Women and Work-Family Interface: In
- Page 155 and 156: Women and Work-Family Interface: In
- Page 157 and 158: Women and Work-Family Interface: In
- Page 159 and 160: Women and Work-Family Interface: In
- Page 161 and 162: Women and Work-Family Interface: In
- Page 163 and 164: Women and Work-Family Interface: In
- Page 165 and 166: Women and Work-Family Interface: In
- Page 167 and 168: Gulf States and the Conflict betwee
- Page 169 and 170: Gulf States and the Conflict betwee
- Page 171 and 172: Gulf States and the Conflict betwee
- Page 173 and 174: Gulf States and the Conflict betwee
- Page 175 and 176: Gulf States and the Conflict betwee
Aishath Muneeza, Ismail Wisham, Rusni Hassan,<br />
International Islamic University Malaysia<br />
undertaken by the ISRA includes avenues in alternative<br />
dispute resolution in Islamic banking.<br />
The KLRCA caters specifically to disputes on Islamic bank<br />
and finance and employ the use of Rules For Arbitration Of<br />
Kuala Lumpur Regional Centre For Arbitration (Islamic<br />
Banking And Financial Services). The Rules by itself holds<br />
itself out as “applicable for the purposes of arbitrating any<br />
commercial contract, business arrangement or transaction<br />
which is based on Shariah principles” and propose a model<br />
arbitration clause for contracts 1 , with additional prerogatives<br />
offered as to the number of arbitrators, law applicable etc.<br />
One drawback on the matter might be taken as Rule 1 of the<br />
aforementioned Rules which state that only in cases where<br />
the disputed agreement in writing calls for the auspices of<br />
the KLRCA, would these rules apply.<br />
In Bahrain's Ministry of Justice signed an agreement with<br />
the American Arbitration Association (AAA), to establish a<br />
new Alternative Dispute Resolution (ADR) centre in Bahrain<br />
to be known as the Bahrain Chamber for Dispute Resolution<br />
(BCDR). This agreement was signed in August 2009. Having<br />
recently enacted legislation which cements the position of<br />
the BCDR in domestic law and establishes Bahrain’s<br />
reputation as a neutral venue for multinational companies<br />
seeking to conduct international arbitrations.<br />
Indonesia faced a general lack of a competent body for<br />
resolution of banking disputes. As have been discussed, the<br />
Indonesian Council of Religious Scholars to set up BAMUI<br />
(Indonesian Muamalat Arbitration Body) in 1993. However<br />
poor knowledge of the Islamic law of arbitration crippled the<br />
process in Indonesia and the fact that a dispute cannot be<br />
arbitrated unless there is an arbitration agreement between<br />
the parties (i.e., the bank and customer) did not help the<br />
situation at all. Consequently, disputes brought for<br />
1 “Any dispute, controversy or claim arising from Islamic banking<br />
business, takaful business, Islamic financial business, Islamic development<br />
financial business, Islamic capital market products or services or any<br />
other transaction business which is based on Shariah principles out of this<br />
agreement/contract shall be decided by arbitration in accordance with the<br />
Rules for Arbitration of Kuala Lumpur Regional Centre for Arbitration<br />
(Islamic Banking and Financial Services)”.<br />
221
Change language