Shariah Compliance on Laws About Alternative Disputes Resolution Institutions for Shariah Financial Institutions: Coverage and Elements

DOI

10.2991/aebmr.k.200513.092How to use a DOI?

Keywords

Shariah compliance, laws, alternative disputes resolution institutions, Shariah financial institutions

Abstract

Shariah compliance is a special feature of Shariah financial institutions. Therefore, the paradigm of Shariah compliance has changed into an instrument for Shariah financial institutions. This article aims to find the coverage and elements of Shariah compliance, in laws about alternative dispute resolution institutions, especially for Shariah financial institutions in Indonesia. With qualitative analysis, this study uses a philosophical, historical, and analytical critical approach to the relevant laws. The results of this study are known that the Shariah compliance instrument covers all operational aspects of each Shariah financial institution, from the preparation of the institution to the completion of the agreement with customers. Therefore, “Shariah compliance” needs to be specifically and clearly regulated, in laws about Islamic financial institutions. In the context of legislation on alternative dispute resolution institutions, in order to be in accordance with the needs of Shariah compliance, it must meet the following elements: 1) clauses regarding the obligations of all parties concerned, to take attention to aspects of Shariah compliance; 2) Shariah competency standardization for arbitrators/ adjudicators through professional certification; 3) the obligation for arbitrators/ adjudicators to use references that are appropriate or not contrary to Shariah principles; 4) There is certainty that the execution of the decision of the arbitrator/ adjudicator is in line with the Shariah financial institutions philosophy. Overall, proper attention to Shariah compliance can increase the trust of Shariah financial institutions customers.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Ro’fah Setyowati
AU  - Islamiyati
AU  - Aista Wisnu Putra
PY  - 2020
DA  - 2020/05/20
TI  - Shariah Compliance on Laws About Alternative Disputes Resolution Institutions for Shariah Financial Institutions: Coverage and Elements
BT  - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)
PB  - Atlantis Press
SP  - 469
EP  - 471
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200513.092
DO  - 10.2991/aebmr.k.200513.092
ID  - Setyowati2020
ER  -