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This fatwa defines a giro as a banking product, which enables the withdrawal of money at any time via a cheque, giro ticket, other financial order facility, or overbooking. The fatwa acknowledges that not all giros are shari'a-compliant, and that a set of guidelines are necessary for the implementation of giros in shari'a banking. Moreover, it notes that there are two types of giro:

1. those that are not shari'a-compliant, insofar as they are based on interest calucations; and
2. those that are shari'a-compliant insofar as they are based on Mudharabah and Wadi'ah principles.

This fatwa acknowledges the increasing demand among society to utilise banking services, including savings accounts, to store its wealth. It notes that withdrawals from a savings account can only be made pursuant to certain, agreed-upon conditions, not via cheque, giro ticket, and/or other means. It also notes that not all savings account practices are shari'a-compliant and, accordingly, a set of guidelines are necessary to ensure shari'a-compliant savings account practices.

The fatwa acknowledges that there are two types of savings accounts:

1. those that are not shari'a-compliant, insofar as they are based on interest calucations; and
2. those are are shari'a-compliant, insofar as they are based on Mudharabah and Wadi'ah principles.

This fatwa acknowledges the increasing demand among society to utilise banking services, including deposit facilities. It notes that withdrawals of deposits can only be made at certain times based on an agreement between the customer and the bank in question. It also notes that not all deposit practices are shari'a-compliant and, accordingly, a set of guidelines are necessary to ensure shari'a-compliant deposit practices.

The fatwa acknowledges that there are two types of deposits:

1. those that are not shari'a-compliant, insofar as they are based on interest calucations; and
2. those are are shari'a-compliant, insofar as they are based on Mudharabah and Wadi'ah principles.

This fatwa acknowledges that the sale-purchase of items by placing an order and pre-paying for those items, pursuant to certain conditions (known as salam), now involves banks. In order that these types of transactions are shari'a-compliant, the fatwa acknowledges the need for a set of guidelines for shari'a financial institutions.

The fatwa mandates a set of conditions for the purchase of an item, the quality therein, as well as the need for the specifications of the item to be clear, and how the purchaser may deal with the item prior to reaching and agreement with the vendor, as well as prior to receipt of the item.

This fatwa defines an istishna' agreement as a sale-purchase agreement whereby the purchaser (mustashni') places an order with the vendor (shani') to have a certain item made pursuant to certain criteria and conditions agreed upon by both parties. The fatwa also acknowledges that shari'a financial institutions are already implementing istishna' agreements, and that the Board believes a set of guidelines is necessary to ensure that such agreements are implemented in a shari'a-compliant manner.

Among other guidelines, the fatwa states that the quantity, form, specifications, and any other relevant information pertaining to the item must be clear, and that it may not be in the form of discharging a debt.

This fatwa acknowledges the need for business investment, often via musyarakah financing, viz. financing based on joint ventures between two or more parties for a certain business, where each party provides a financial contribution on the condition that profit and risk are shared equally, pursuant to the agreement in place. The fatwa also acknowledges that shari'a financial institutions are already implementing musyarakah financing agreements, and that the Board believes a set of guidelines is necessary to ensure that such agreements are implemented in a shari'a-compliant manner.

More specifically, among other requirements, the fatwa dictates that statements of consent and accedence must be made by all parties to show their willingness to be a party to an agreement, ensuring offer and acceptance is explicit, and that it is carried out at the time the agreement is executed. Moreover, all parties must have legal standing (cakap hukum), they must participate and contribute, however, their contributions need not be of the same magnitude.

This fatwa acknowledges that in order to obtain benefit from an object, often an ijarah (rental) agreement is necessary. The fatwa mandates that consent and accedence are required from both parties to the agreement, either verbally or in another form. The benefit of the object or service must be given a financial value and be practical to implement. The fatwa also sets out the obligations of shari'a financial institutions and customers as parties to such an agreement.

This fatwa acknowledges that parties may need to implement a wakalah agreement, viz. devolve authority to another party in matters where proxies are permissible. Moreover, it acknowledges that this practice is offered by shari'a financial institutions as a banking service for customers, and that to ensure shari'a-compliance, shari'a financial institutions require a set of guidelines.

More specifically, among other requirements, the fatwa dictates that statements of consent and accedence must be made by all parties to show their willingness to be a party to an agreement, and that a wakalah agreement may not be terminated unilaterally.

This fatwa acknowledges that persons conducting a business enterprise often require insurance from another party via a kafalah agreement, viz. a gurantee provided by an insurer (kafiil) to a third party to fulfil the obligations of a second party or an insured. To meet these needs, shari'a financial institutions are obligated to make available an insurance (kafalah) scheme based on shari'a principles. The fatwa asserts that to ensure shari'a-compliance, shari'a financial institutions require a set of guidelines pursuant to which they can implement kafalah agreements.

More specifically, among other requirements, the fatwa dictates that:

1. statements of consent and accedence must be made by all parties to show their willingness to be a party to an agreement;
2. insurers may accept nominal fees; and
3. kafalah agreements for a fee are binding and may not be terminated unilaterally.

This fatwa acknowledges that some persons not able to repay debts directly may opt to transfer those debts to a third party via a hawalah agreement. The fatwa notes that shari'a financial institutions are already implementing such agreements and, therefore, would benefit from a set of guidlines to ensure their implementation is shari'a-compliant.

More specifically, the fatwa mandates that a hawalah agreement be between a muhil (party who is in debt and owed), muhal/muhtal (owed by the muhil), and muhal 'alaih (in debt to the muhil and indebted to the muhal), and that the agreement show clearly each party's willingness to be a party to the agreement.

This decree defines Musyarakah Mutanaqishah financing as a financing facility based on the principles of musyarakah, that is, a joint venture where the shari'a financial institution's capital is reduced as a result of making incremental commercial transfers to the customer. It notes that the special characteristics of Musyarakah Mutanaqishah are that:

1. enterprise capital of both parties (shari'a financial institution and customer) is stipulated in portions;
2. enterprise capital already stipulated may not be reduced for the term of the agreement;
3. the shari'a financial institution agrees to transfer all portions in a commercial and incremental fashion to the customer;
4. deposits made by the customer to the shari'a financial institution that are of the same value as portion units are to be treated as commercial portion unit transfers, while deposits that exceed that value are profits that become the property of the shari'a financial institution.

The decree also acknowledges that the purpose of Musyarakah Mutanaqishah financing is to provide a financing facility to individual and corporate clients to increase their capital and/or assets based on a profit-sharing model.

This fatwa defines Musyarakah Mutanaqisah as a financial arrangement whereby one party's ownership of assets or capital is reduced as a result of the other party purchasing them in increments, and an arrangement that comprises a Musyarakah (sale-purchase) agreement. More specifically, a Musyarakah Mutanaqisah agreement involves one party (the shari'a financial institution) promising to sell all their portions (hishshah) incrementally to the other party (customer), who is obligated to purchase them.

This fatwa defines a deposit certificate as a deposit accompanied by a certificate as proof of ownership that can be transferred in accordance with current legislation. It also defines a shari'a deposit certificate as a deposit certificate that accords with shari'a principles. The fatwa specifies that a shari'a deposit certificate can be executed via a Mudharabah agreement issued by a shari'a financial institution.

This fatwa acknowledges that the relevant ulama could not agree as to whether or not the sale or purchase of gold in instalments was permissible in Islam. The fatwa does, however, determine that the non-cash sale and purchase of gold, either through normal sale-purchase methods or murabahah sale-purchase, is permissible under shari'a, provided gold is not used as an official currency.

This fatwa acknowledges that state shari'a securities need to be issued in order to support and expedite infrastructure development and other similar projects. It defines an Ijarah Asset To Be Leased as an ijarah contract, the object of which has been specified, and a part of which already exists at the time the contract is executed, while the object of the contract will be transferred in its entirety in the future at time agreed upon by the parties to the contract. It also defines an Ijarah Asset To Be Leased state shari'a security as a security issued pursuant to shari'a principles, as proof of ownership of a part of the asset that becomes the object of the ijarah.

This fatwa concerns shari'a guarantees, and defines a shari'a guarantee as a guarantee between parties based on shari'a principles. The fatwa specifies that a contract that can be used as a shari'a guarantee is a Kafalah bil ujrah, the provisions of which include:

1. the object of the contract can, in whole or in part, be a financial obligation that emerges from a shari'a transaction, or anything else guaranteed, based on shari'a principles;
2. statement of consent and acceptance must be enunciated by the parties to show their intention to enter into a contract;
3. the contract fee must be stipulated in the contract, and agreed to by the parties; and
4. a Kafalah bil ujrah is binding and cannot be terminated unilaterally.

This fatwa states that in order to guarantee transparency and accountability, state shari'a securities are generally issued via auctions and book building. Therefore, auctions and book building, including the stipulation of state shari'a security prices, must be in accordance with shari'a principles. The fatwa specifies that prices may be stipulated pursuant to one of two methods:

1. uniform pricing; or
2. multiple pricing.

This fatwa acknowledges that one of the basic principles of a murabahah agreement is the sale of an item to a purchaser at a purchase price and cost that incurs an additional agreed-upon profit for the vendor. The fatwa notes that a vendor (shari'a financial institute) will sometimes obtain a discount from the supplier, and that that discount can be problematic insofar as it is unclear whether or not it is the right of the shari'a financial institute to sell the item to the customer at the pre-discount or post-discount price.

The fatwa clarifies that if the shari'a financial institute obtains a discount from the relevnat supplier, the actual price is the price after the discount has been factored in, rendering the discount the right of the customer. If, however, the discount is obtained after the parties have reached an agreement, the terms of the agreement stand.

This fatwa acknowledges that shari'a financial institutes, aside from being commercial institutes, must also play a social role to stimulate the economy. The fatwa notes that this can be achieved by channelling funds pursuant to the principle of al-Qardh, whereby a loan agreement is executed in the customer's favour on the condition that the customer returns the principal sum to the shari'a financial institute at a time agreed on by both parties. The fatwa states that such an agreement is permitted if:

1. the customer bears the associated administrative costs;
2. the shari'a financial institute requests from the customer a security if deemed necessary;
3. the customer wishes to voluntarily provide to the shari'a financial institute a donation, provided it is not a condition of the agreement; and
4. if the customer is unable to return a part or all the funds at the time agreed upon and the shari'a financial institute has already determined the customer's impecuniosity with certainty, the institute can either extend the term of the agreement or write-off the debt in part or in its entirety.

If the customer shows no signs of repaying the principal sum, the shari'a financial institute may take a number of steps including selling the security and/or enforcing the customer's contractual obligations.

This fatwa acknowledges that a banking service that has become a necessity in society is the safe deposit box and that, therefore, shari'a banks need to make safe deposit boxes available. The fatwa declares that safe deposit boxes are to be underpinned by ijarah (rental) agreements and that items stored in safe deposit boxes are to be non-haram items of value that are not prohibited by the state. Rental costs are to be stipulated based on an agreement between the shari'a financial institute and customer, and the rights and obligations of the shari'a financial institute and customer may be based on such an agreement provided they do not contravene ijarah conditions.