Purpose The purpose of this study is to examine the role of corporate governance in combating corruption through the implementation of Section 17A of the Malaysian Anti-Corruption Commission Act 2009 (MACC Act) within Islamic financial institutions in Malaysia, particularly Islamic banks. This study explores how strict corporate liability requirements influence Islamic corporate governance practices operating under a dual governance framework that integrates conventional regulatory expectations with Shariah compliance principles. Design/methodology/approach This research adopts a qualitative approach based on semi-structured interviews conducted with senior compliance officers and Shariah governance experts within Malaysian Islamic financial institutions. This study involved participants from multiple Islamic banking institutions selected through purposive sampling based on their expertise in governance, compliance and Shariah oversight. The analysis evaluates institutional responses to Section 17A, mapping governance practices against the T.R.U.S.T principles (Top-level commitment, Risk assessment, Undertake control measures, Systematic review and Training and communication). Interview data were analysed using thematic analysis involving coding, categorisation and interpretation of recurring governance and compliance themes. This study assesses operational adaptations, governance integration mechanisms and compliance challenges arising from regulatory requirements. Secondary sources, including regulatory guidelines, institutional reports and governance frameworks, were triangulated with interview findings to strengthen analytical validity and consistency. Findings The findings of this study reveal that Section 17A has driven significant institutional reforms, including the establishment of specialised integrity and governance units, adoption of international standards such as ISO 37001 and strengthening of internal anti-corruption frameworks. However, operational challenges emerged because of extensive due diligence requirements, documentation burdens and third-party risk management processes, which contributed to procedural delays. Cultural resistance linked to trust-based operational traditions further highlighted the need for continuous training and internal communication. Effective harmonisation between regulatory compliance and Shariah governance was facilitated through joint supervisory mechanisms involving compliance and Shariah committees. Respondents also identified the need for sector-specific regulatory guidance, enhanced inter-agency coordination and specialised skills development, particularly in forensic auditing and digital compliance tools. Originality/value This study contributes to the literature by analysing the integration of anti-corruption corporate liability provisions within the unique dual governance structure of Islamic financial institutions. This study provides practical insights into aligning regulatory compliance with Shariah ethical values and offers policy recommendations to strengthen governance frameworks, thereby supporting sustainable and ethically grounded governance practices in Malaysia’s Islamic banking sector.

Islamic finance is rooted in Shariah or Islamic law, which promotes the well-being of humanity and discourages harmful practices. This Element highlights the nexus between Islamic finance and sustainable development, emphasizing the ethical and socially responsible nature of Islamic finance. It discusses how Islamic financial institutions contribute to sustainable development through the achievement of Sustainable Development Goals , Environmental, Social, and Governance criteria, and Socially Responsible Investment practices. Case studies from different parts of the world demonstrate practical applications of Islamic finance principles in supporting SDG. It suggests reforms that can unlock the full potential of Islamic finance, including the institutionalization of Islamic social finance, convergence with commercial finance, leveraging technology, integrating Shariah-based financial products, considering social return as a benchmark for approving products, introducing blended finance, and collaborating with humanitarian agencies. The potential of Islamic finance for sustainable development provides valuable insights for academicians, practitioners, and policymakers.

In May 2024 it was officially announced that Malaysia would launch the first social exchange late 2024 or beginning 2025. A social exchange functions as a platform where Social Enterprises and Non-Governmental Organisations can raise capital from impact investors and other funders while showcasing their social impact. By creating a marketplace specifically for socially impactful investments, a social exchange can address funding gaps, improve access to finance for Social Enterprises and Non-Governmental Organisations, and ultimately promote their growth and sustainability. However, in Malaysia crowdfunding already exists. Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors (or donors). This approach taps into the collective efforts of a large pool of individuals—primarily online via social media and forums—and leverages their networks for greater reach and exposure. This paper investigates the necessity of a social exchange, in light of the various existing alternative fund-raising methods in crowdfunding. This paper finds that a social exchange has to carve out its niche to be relevant in the arena of fundraising methods in Malaysia.

This article confirms that there is no consensus among Shari’ah scholars on virtual currencies’ (VCs) legitimacy. However, the purpose of this article is to focus on three considerations: first, the historical failure of private currencies against states’ currencies will have an impact on the ultimate decision on the legitimacy of VCs. Second, various modern countries have different regulatory approaches to VCs ranging from outright bans to comprehensive regulation and case studies show their integration into global legal system. Third, this study reveals that the use of VCs in Islamic social finance is growing; therefore, international, and regional Islamic bodies should enact a firm resolution on the Shari’ah position of using VCs. As the developments happening due to Industry 4.0 cannot be controlled, developing Islamic social finance and its integration with technology is essential. This is qualitative research employing an inductive approach for in-depth understanding of the regulations governing VCs within different legal systems, using the Cambridge alternative finance reports of (2023) as a key reference. The findings of this research are anticipated to assist Shari’ah scholars/bodies and Islamic social financial institutions to comprehend the significance of escalating the research to understand VCs and to provide the Shari’ah parameters in this regard in a near future.

Purpose This study aims to investigate the intentions of Muslim cryptocurrency (CC) holders to fulfil their zakat obligations on digital assets, exploring the unique motivations and barriers within this emerging financial landscape. Design/methodology/approach The research uses a quantitative approach and a cross-sectional research design through online surveys, using purposive sampling to gather data from Muslim CC holders. The integrated model, known as the theory of planned behaviour and social cognitive theory (TPB-SCT) model, is used to comprehensively analyse the key factors influencing intentions to pay zakat on cryptocurrencies (CCs). Findings The study reveals that attitude towards zakat on CCs and perceived behavioural control regarding zakat on CCs have a significant and positive effect on the intention to pay. In contrast, subjective norms show no significant influence. CCs-related financial risk exerts a negative impact on intention. Moreover, CCs-related zakat knowledge and adherence to Shariah compliance are strongly associated with intention. These findings provide insights into the intricate dynamics of religious compliance within the evolving realm of digital assets. Practical implications Outcomes offer profound indications to stakeholders, including financial institutions, zakat agencies, policymakers and the community, on how to integrate zakat into this new and rapidly evolving financial paradigm like CC. Originality/value A pioneering effort was made in this study by exploring the intentions of Muslim CC holders to fulfil zakat obligations, bridging a significant gap in the existing literature. Developing and validating an integrated model of TPB-SCT in the realm of zakat on CC enriches the literature with a novel theoretical framework.

Purpose — This study examines the Islamic banking industry’s commitment to ESG (environmental, social and governance principles) in selected countries by assessing it from the maqāṣid al-Sharīʿah (objectives of Islamic law) pyramid perspective. Design/Methodology/Approach — A rigorous quantitative study was conducted using the REFINITIV database, which covered 12 countries from 2020 to 2024, resulting in 497 observations. Findings — The study finds statistically significant evidence that the Islamic banking industry sets a high standard of ESG for Islamic banks to comply with at the country level. In the long run, the rate of commitment of the Islamic banking industry to each component of the ESG score is explained by the industrial environmental index score (7.21%), the social index score (25.43%), and the governance index (17.98%), respectively. This parameter provides information about the proportion of the ESG score to which there is a greater commitment than for the others. This suggests that the Islamic banking industry pays more attention to the social index score, followed by governance and the environment. It can therefore be deduced that the Islamic banking industry pays substantial attention to the social aspects as ḍarūriyāt (essentials), followed by strengthening governance factors as ḥājiyyāt (needs) and the environmental factor as taḥsīniyyāt (embellishments). On average, the commitment of Islamic banks to ESG at the country level is statistically significant (49.73%). However, there is still scope for Islamic banks at the country level to increase their commitment. Since ESG commitment varies among Islamic banks, the number of Islamic banks with low ESG commitment contributes to the average being driven down. Therefore, the Islamic banking industry is expected to have a standardised industry benchmark for each ESG component and the combined ESG. Originality/Value — This study adds value to the body of knowledge by exploring the Islamic banking industry’s commitment to ESG through the three levels of maqāṣid al-Sharīʿah—a first in this area that is not found in previous studies on ESG. Research Limitations/Implications — The availability of data imposed certain constraints on including more countries beyond the selected Muslim nations. Nonetheless, the findings offer valuable insights for Islamic banks in countries not covered in this study. Practical Implications — This study provides Islamic banks with a clear understanding of the extent of their contributions to ESG within the framework of maqāṣid al-Sharīʿah. Therefore, each Islamic bank could re-strategise its approach as necessary. Social Implications — These findings present Islamic banks with the opportunity to examine the environment in which they operate and adhere to the most essential aspects of maqāṣid al-Sharīʿah that are pertinent to that location, thus making their contribution significant to the local community.

This study investigates the causes of insolvency in Islamic banks (IBs) through a qualitative multiple-case analysis of failed Islamic financial institutions (IFIs) in Turkey, Jordan, and South Africa. The selected cases İhlas Finans (IF), Islamic Bank Limited (IBL), Islamic Investment House (IIH), and Islamic National Bank (INB) are examined to identify key governance, regulatory, and Shariah-related weaknesses that contributed to their collapse. Data were collected from secondary sources, including regulatory reports, court records, and academic studies, and analyzed using thematic and comparative approaches. The findings reveal that inadequate governance, absence of comprehensive insolvency and recovery frameworks, and weak Shariah governance were central causes of institutional failure. Conflicts between national laws and Shariah principles further compounded the insolvency risks. The study contributes to the literature by providing a cross-jurisdictional understanding of insolvency risks in Islamic banking and proposing the need for structured resolution mechanisms aligned with Shariah principles. Policy recommendations are offered to enhance regulatory supervision, strengthen Shariah governance, and improve crisis preparedness within the Islamic banking sector.

The study examines the challenges Malaysian Islamic financial institutions (IFIs) face when building a robust Shariah compliance culture in accordance with guidelines set by Bank Negara Malaysia (BNM). Using an exploratory qualitative method that merges semi-structured interviews with thematic analysis of secondary data, it assesses how leadership commitment, organisational structures, and regulatory factors shape Shariah adherence. Findings reveal inconsistencies in Shariah interpretation, conflicts between ethical mandates and commercial objectives, and complexities in balancing competitiveness with Islamic principles. These gaps call for stronger leadership, targeted training, and transparent governance to embed authentic Shariah values. While the focus on Malaysian IFIs may limit broader applicability, the research underscores the crucial role of an integrated Shariah compliance culture in bolstering Islamic finance’s identity and competitiveness.

PurposeAs financial inclusion becomes increasingly important - particularly for women often impoverished in many countries - this study aims to examine a specific tool for promoting financial inclusion: Islamic microfinance (IsMF). It explores the regulatory and operational dynamics of Islamic finance institutions in Nigeria and examines the role of women as stakeholders in this process.Design/methodology/approachThe study uses a qualitative analysis. Semi-structured interviews were conducted, and responses were analysed via the content analysis technique.FindingsThe findings of this study prove to be relevant to both the literature and the practice of IsMF, especially in Nigeria. The findings reveal several regulatory challenges that existing institutions face, specifically sufficient capital and an absence of a favourable environment. In addition, while there is a notable emphasis on women's involvement within IsMFIs, female entrepreneurs still encounter barriers to accessing their services.Research limitations/implicationsThe limitations of this study are due to its qualitative nature, which takes into consideration a limited number of responses.Practical implicationsThe findings provide suggestions on how both policymakers and industry practitioners can enhance their services/policies to better increase the participation of women in IsMF.Social implicationsImproving women's participation in finance has implications in promoting their economic and social development and empowerment.Originality/valueWhile IsMF has been explored in various global contexts, much of the existing literature focuses on regions like South and Southeast Asia. Fewer studies have addressed this issue within the African context, and even fewer comprehensively analyse the role of women in these institutions. In addition, studies on IsMF in Nigeria have not explored all existing institutions, leaving a gap in the understanding of the full landscape.