DEFINING SHARIAH BOUNDARIES: AL-I‘ĀNAH ‘ALĀ AL-MA‘ṢIYAH IN MALAYSIA’S ISLAMIC BANKING OPERATIONS

Abstract

Islamic banking in Malaysia operates within a dual banking system alongside conventional banks, raising concerns about the potential facilitation of activities that contradict Shariah principles. A key issue arises when Islamic banks share resources with conventional counterparts, potentially leading to al-i‘ānah ‘alā al-ma‘ṣiyah (facilitation of acts of disobedience). This study examines the Shariah status of al-i‘ānah ‘alā al-ma‘ṣiyah by analysing the views of classical Shariah scholars through comparative Fiqh analysis. The views of the scholars are gathered through reviewing the classical manuscripts of respective school of jurisprudence. It found that the classical scholars agreed that directly facilitating sinful acts, e.g. selling weapons to enemies, is prohibited. In the case of indirect facilitation, most scholars prohibited this act when the seller knew that the buyer had a sinful intent, e.g. selling grapes to someone who intends to turn them into wine. In contrast, Imam Abu Hanifa permits a transaction where the object is not inherently sinful and the sinful outcome depends on the buyer’s choice. By contextualising these classical juristic positions within the operational realities of Malaysia’s contemporary Islamic banking industry, this study proposes the development of structured ḍawābiṭ (Shariah parameters) to assist Shariah committee members, regulators, and industry practitioners in distinguishing between permissible operational interdependence and impermissible facilitation. The proposed framework aims to support clearer regulatory guidance, strengthen Shariah governance, and enhance risk management practices in Malaysia’s evolving Islamic banking ecosystem.