Shariah Screening Process in Malaysia

Shariah is an Islamic law derived from the divine revelation and practice of the prophet; namely, al- Quran and al-Hadith. Shariah prohibits elements such as usury (riba), gambling (maysir) and uncertainty (gharar). These elements are present in many conventional financial activities. For a Muslim, this means getting involved indirectly in prohibited practices, which is considered as grave sin. To tackle this problem, Shariah scholars have set some acceptable boundaries for companies to do their business activities and outline steps to purify the sinful earnings. However, it is not an easy task to do. This paper will discuss the criteria, processes as well as the tediousness involved in the screening for Shariah compliant and proposed the possible solution to be undertaken to assist in the Shariah screening process.