• norhanizah johari KUIS
  • Nawal Kasim
  • Nor Aishah Mohd Ali
  • Roshayani Mohd Arshad


Governance, Key functions, Shariah Non-Compliant Income, Financial Reporting


Effective risk management is an essential component in sustaining business growth and profitability. To be competitive in the industries, every bank has to establish strategic risk management guidelines to exercise effective control in minimizing risk management failures. This is where the control functions are essential in exercising their roles with the advice of the Shariah Committee and approved by the board. This study is mainly to explore the roles of key functions in managing and reporting of Shariah Non-Compliant Income (SNCI) in Islamic banks in Malaysia. Data were gathered from in-depth interviews from the key functions of 10 participating IBs, and review analysis of two policy documents on the Financial Reporting for Islamic Banking Institutions and Shariah Governance Policy 2019. It is interesting to note that purification measures of SNCI need further attention due to little guidelines from the regulator. The findings may benefit multiple users.


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How to Cite

johari, norhanizah, Kasim, N., Mohd Ali, N. A., & Mohd Arshad, R. (2021). THE ROLE OF KEY FUNCTIONS IN MANAGING AND REPORTING THE SHARIAH NON-COMPLIANT INCOME (SNCI) IN MALAYSIAN ISLAMIC BANKS. International Journal of Islamic Economics and Finance Research, 4(1), 1-14. Retrieved from