Session One: Overview – Understanding Legal, Documentation and Shariah Risk in Islamic Banking and Finance
Reminding ourselves of the unique operational risks facing Islamic banking and finance: legal and Shariah in particular
Examining recent significant cases of legal and Shariah risk in Islamic finance and what they teach us
Discussing the intricacies of cross-border and multi-jurisdictional transactions
An overview of global initiatives and regulatory developments to strengthen and develop Shariah governance and manage Shariah risk
Building a robust and effective legal and Shariah risk management capability within an Islamic financial institution
Mian Muhammad Nazir — CEO, Dar Al Sharia
09:45 – 10:45
Session Two: Effectively Recognizing and Managing Cross-Border Legal Risk in Islamic Banking and Finance
Defining exactly what is cross-border legal risk in the context of Islamic finance
Identifying where cross-border legal risk typically arises in Islamic banking and finance activities
Evaluating and managing multi-jurisdictional transactions and the associated legal complexities
Analyzing where and how Shariah comes into the assessment of cross-border legal risk
Discussing cross-border legal risk as a form of operational risk and how it can be managed
Mian Muhammad Nazir — CEO, Dar Al Sharia
10:45 – 11:15
Coffee
11:15 – 12:45
Session Three: Understanding and Managing Legal and Documentation Risk in Islamic Banking (Part 1)
What is and where does legal and documentation risk occur considering the products and activities local banks are involved with?
Defining exactly what is legal risk in the context of Islamic banking: defective transactions; failure to protect assets; misrepresentation as examples
Identifying and discussing common instances of documentation risk: incorrect selection of documents and contracts; misuse or poor drafting of documentation; incorrect application of documentation and/or legal principles
The potential challenges of interpreting Shariah clauses and the enforceability of contracts in Islamic banking and finance
Examining the latest permutations of local regulation and requirements: Islamic Financial Services Act 2013 and others
Assessing the significant role of Bank Negara Malaysia policy documents, guidelines and Shariah standards
Discussing the management of legal and documentation risk in conjunction with Shariah risk
Mohd Johan Lee — Managing Partner, J Lee & Associates
12:45 – 14:00
Luncheon
14:00 – 15:30
Session Three: Understanding and Managing Legal and Documentation Risk in Islamic Banking (Part 2) Mohd Johan Lee — Managing Partner, J Lee & Associates
15:30 – 16:00
Coffee
16:00 – 17:00
Session Four: Recognizing and Managing Shariah Risk in Islamic Banking & Finance: Latest Issues and Challenges
What Shariah risk is: reiterating where Shariah risk occurs and manifests in an Islamic financial institution
Appraising the Shariah Governance Framework (SGF) and its workings and objectives in Malaysia
Discussing the workings and objectives of Shariah audit and compliance functions: latest developments and regulation
Assessing the importance of Shariah non-compliance reporting: recent developments and regulation
Planning, developing and implementing an effective, robust and all-encompassing Shariah risk management program within an Islamic financial institution
Reizal Amiruddin — Head, Shariah Research and Advisory, AmBank Islamic
