Amir Husin Mohd NorAmir ShaharudinMohamad Zaharuddin ZakariaiAhmad Zaki SallehMualimin Mohammad SahidHussein ‘Azeemi Abdullah ThaidiMuhamad Firdaus Ab RahmanMuhammad Ridhwan Ab. AzizMohd Afiq Ab. Jalil2024-05-292024-05-2920202232-104710.33102/jfatwa.vol20no1.4http://jfatwa.usim.edu.my/index.php/jfatwa/article/view/296https://oarep.usim.edu.my/handle/123456789/13915Shariah compliance is the most critical element in the operations of Islamic financial institutions. In order to ensure the Shariah compliance, some samples of IFIs products are reviewed and audited. The audit practices has led to growing findings which reveal cases of uqud al-fasidah (void contracts) in IFIs. Thus, the articles discusses the issue by recommending several actions for IFIs in dealing with void contracts. The article highlights seven common causes of void contract related with bay al-tawarruq transaction. Some of the void instances can be rectifiable and some are non-rectifiable. As Shariah Non-Compliance (SNC) is treated seroiusly by IFIs and the regulators, the dicussion will provide insights on how to reduce the SNC incidences and to minimse their financial impatcs to relevant partiesenShariah scholarsijtihadIslamic finance innovationsArticle5363201