Mechanism for Preventing Shariah Non-Compliance (SNC) Events in Islamic Financial Institutions


  • Muhammad Ridhwan Ab Aziz Universiti Sains Islam Malaysia
  • Noor Naemah Abdul Rahman Universiti Malaya



Shariah non-compliance, Islamic Financial Institutions, Islamic Finance


Islamic financial institutions are fastest growing industry in all around the world. This occurred due to the need of Islamic banking and finance product among Muslim community as much as their concerns with Shariah non-compliance (SNC) event that may derive from banking and financial transaction. SNC event will raise the risk management of IFIs and have a negative influence on the IFIs' reputation among their present and future clients. Hence, this study is aimed to investigate the mechanism for preventing SNC events in Islamic financial institutions. This study employs a qualitative approach. This research achieves its objective through document analysis and interview with experts. Secondary data also gathered from sources such as journal papers and the websites of authorized authorities. General finding shows that, a sound Shariah governance and internal control mechanism are significant in overcome SNC events in Islamic financial institutions.


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How to Cite

Ab Aziz, M. R., & Abdul Rahman, N. N. (2023). Mechanism for Preventing Shariah Non-Compliance (SNC) Events in Islamic Financial Institutions. E-Jurnal Penyelidikan Dan Inovasi, 10(2), 197–208.