Labuan: Labuan Financial Services Authority (Labuan FSA) has issued a Guidance Note on Maqasid al-Shariah for the Labuan International Business and Financial Centre (Labuan IBFC). It provides market participants with a clear and practical framework to strengthen the application of Maqasid al-Shariah principles across business operations, governance practices, and financial product offerings.
According to BERNAMA News Agency, Labuan IBFC is recognized as a leading global jurisdiction for Islamic finance, operating under one of the world’s most comprehensive legal frameworks, anchored by the Labuan Islamic Financial Services and Securities Act (LIFSSA) 2010. In a statement, Labuan FSA announced that with this issuance, Labuan IBFC becomes the first and only International Financial Centre (IFC) to publish a dedicated Guidance Note on Maqasid al-Shariah principles, further reinforcing its leadership in the sector.
The Guidance Note is part of the broader Islamic Digital Asset Centre (IDAC) initiative launched i
n 2022 to promote ethical, transparent, and sustainable practices within Labuan IBFC. It aims to elevate shariah application beyond mere compliance, encouraging a holistic approach that supports long-term value creation and positive societal impact.
By aligning Maqasid al-Shariah with global frameworks, including environmental, social, and governance (ESG) criteria, the United Nations’ Sustainable Development Goals (SDGs), Socially Responsible Investing (SRI), and the Labuan IBFC Sustainability Taxonomy (LiST), the Guidance Note positions Labuan IBFC at the forefront of worldwide efforts to advance a just, responsible, and sustainable financial future.
Anchored on five core aspirations, the Maqasid al-Shariah framework provides a universal and forward-looking blueprint to enhance standards and progressive growth within Labuan IBFC’s financial ecosystem. These aspirations encompass upholding ethical and fair dealings, enhancing financial stability and resilience, driving purposeful innovation and growth, cha
mpioning socio-economic justice and financial inclusion, and embedding holistic sustainability and stewardship.
By integrating these ethical and moral objectives with contemporary sustainability concepts, the Guidance Note supports market players in achieving long-term commercial value while contributing to a responsible and resilient financial ecosystem. Further details on the Guidance Note on Maqasid al-Shariah for Labuan IBFC are available.