Prudence in Managing and Reporting The Shariah Non-Compliant Income by Malaysian Islamic Banks

Understanding Shariah Non-Compliance Incidents (SNC) is critical to all key functions of Islamic banks. Prudence in managing and reporting the SNC bank because have decide on matters related issues Non-Compliances (SNCs). One SNCs Non-Compliant Income (SNCI), which should be deducted from income This SNCI has reported banks' annual reports by Committee bank. Two sets semi-structured interview questions were developed for this study, first set was designed banks’ functions, second Shari’ah scholars represented (SC) Advisory Council (SAC) BNM. The data collected three types Banking Institutions (IBIs) through purposive sampling. In-depth interviews are primary source information collection. transcribed analysed using Atlas. ti eased ‘The Six Phases Reflexive Thematic Analysis’ provide a coherent compelling interpretation grounded data. Financial one evidence that bank’s function seen as accountable, transparent, prudent complying with principles regulatory requirements regulator. study adds very limited literature end-to-end process SNCI. findings thought worthwhile previous studies failed highlight such prudence Banks Malaysia.