Islamic Finance

Delivering value through Shariah-compliant financing activities

PwC is one of the key leaders in Islamic finance globally as well as one of the pioneers in this country, having worked with various stakeholders including governments, regulators and financial institutions. As pioneers, we have had the opportunity to shape the industry in various ways through our work and collaboration with several standard-setting organisations. As the industry matures, it will need to transition from being attractive solely because of its values (adherence to Shariah principles) to being competitive with other Islamic Finance institutions. But, for those that can get it right, there is significant potential to create truly differentiated Islamic Finance offerings that uphold Shariah principles and align with conventional market trends.

PwC Malaysia has dedicated Islamic finance teams with extensive experience in advising clients on the relevant issues shaping the Islamic Finance industry.

Why PwC?

We have experience in the following areas:

Regulatory

Regulatory framework advisory: We worked together with the Central Bank of Malaysia (Bank Negara Malaysia) in formulating tax incentives to promote Malaysia as an International Islamic Financial Centre. We also assisted the Central Bank of Malaysia to regulate Islamic financial institutions involved in the real estate business
Shariah governance and audit assessments: We served four Islamic banks in Malaysia by assessing their Shariah governance and audit framework. This involved reviewing the banks’ compliance with the Central Bank of Malaysia’s Shariah governance framework, as well as the results of the Shariah audit work performed by the banks.

Assurance

Audit of Islamic banks: We have audited a number of Islamic banks in Malaysia. This involves understanding the specific banking operations in Islamic banks and testing the adequacy and effectiveness of internal controls.

Advisory

Development of strategy, operating model and implementation of operating model until launch: We assisted a bank in Dubai to diversify within the banking sector by setting up the structure of the bank and formulating its post-launch strategy.

Our services include

Advisory
Assurance
Tax advisory

Advisory

We can help you in the following areas:

Strategy development and market feasibility assessments
Shariah governance and risk advisory
Operational reviews and assessments
Shariah audit
Value-Based Intermediation (VBI) and Environmental, Social and Governance (ESG) advisory
Accounting advisory

Assurance

We can help you in the following areas:

External audit
Internal audit
Shariah audit and compliance

Tax advisory

We can help you in the following areas:

Tax advisory on structuring of Islamic financing and refinancing arrangements, and sukuk issuance
Tax structuring and establishment of Shariah compliant funds, and fund management / private equity / Islamic bank structures in Malaysia
Tax efficient structuring and establishment of Islamic REITs in Malaysia
Takaful restructuring and application for tax incentives
Advisory relating to tax efficient structures and implications of establishing Islamic based exchange companies to remit money and metals as commodities