Author

  • Norzitah Abdul Karim

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • Amirul Afif Muhamat

    • Faculty of Business and Management, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • Mohamad Nizam Jaafar

    • Arshad Ayub Graduate Business School, Universiti Teknologi MARA, Malaysia
    • Malaysia

  • Munira Abu Bakar

    • Masyref Shariah Advisory & Islamic Finance Consultancy, Malaysia
    • Malaysia

  • Salina Kassim

    • International Islamic University Malaysia, Malaysia
    • Malaysia

Abstract

This research paper is a conceptual study that aims to examine financial fraud and its relation to noncompliance to Shariah for the Islamic financial institution in Malaysia. The study is unique because it seeks to understand how deviations from Shariah guidelines could contribute to financial misconduct, examining the specific non-Shariah compliance risks that arise when the deviation of internal control fails to align with Islamic law. Utilizing quantitative methodology, this study adopts and adapts from an existing structured questionnaire survey to collect data. This study also employs Structural Equation Modelling (SEM) in its analysis of the data. The implication of this study for policymakers includes the development of an effective strategy for mitigating financial fraud and ensuring Shariah compliance, thus ensuring the integrity and reputation of the Islamic financial sectors. This will undoubtedly contribute to the stability of the economy.

Keywords

References

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How to Cite

Abdul Karim, N., Muhamat, A. A., Jaafar, M. N., Abu Bakar, M., & Kassim, S. (2024). Non-Shariah Compliance Risks (NCR) and the Danger of Potential Fraud in the Islamic Financial Institutions: A Conceptual Framework. Information Management and Business Review, 16(3(I)S), 572-578. https://doi.org/10.22610/imbr.v16i3(I)S.4084

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Copyright (c) 2024 Norzitah Abdul Karim, Amirul Afif Muhamat, Mohamad Nizam Jaafar, Munira Abu Bakar, Salina Kassim (Author)

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Published in

Vol. 16 No. 3(I)S (2024) Supply Chain Sustainability, Smart HRM & Inclusive Education View issue contents

Published

2024-10-07

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