Malaysia set to improve professional standards for Islamic insurance

Takaful qualifications to be run out in this market to “elevate professionalism”

Malaysia set to improve professional standards for Islamic insurance

Insurance News

By Sam Boyer

The Malaysian central bank will soon introduce programs to certify professional qualifications in Islamic finance and takaful – or Islamic insurance.

The Chartered Institute of Islamic Finance Professionals announced recently the programs would be available by the end of the year.

The two new certifications to be available will be for chartered Islamic bankers and chartered Takaful practitioners. The qualifications would be comparable to chartered banker qualifications in the non-Islamic system.

"We would like to elevate the professionalism of talent in Islamic finance," Marzunisham Omar, Bank Negara's assistant governor in charge of the sector, told the Nikkei Asian Review.

The central bank has been trying to encourage higher competency levels in finance. Managers in areas credit, risk management and anti-money laundering areas will have to meet higher qualification standards.

The Islamic Banking and Finance Institute of Malaysia, a central bank affiliate, will run the programs.
Islamic law prohibits the charging of interest. Revenue is made from profit-sharing between the creditor and the debtor. Islamic finance is praised by its champions for its cost-effectiveness and ethical values.

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