Introduction New Islamic Financial Services Act (ISA) 2013 will be introduced in order to enforce the management of Syariah non-compliance risk and require Islamic financial institutions. It also to ensure that their aim, operation, business, affairs and activities are Syariah compliance . The objects of this Act are to promote financial stability and compliance with Syariah and this new Act seeks to consolidate the Islamic Banking Act 1983 and the Takaful Act 1984. This new Act will revamp the existing laws on Islamic banking in Malaysia, inter alia:- 1. Definition of Islamic Banking Business Previously, the definition of "Islamic banking business" in the Islamic Banking Act 1983 were defined as banking business whose aims and operations do not involve any element which is not approved by the religion of Islam. This definition is too general because there is no exact definition of banking business. However, in the new Act, under section 2 of t