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Shariah Non-Compliance Risk Management and Reporting for Islamic Banking & Finance

SIDC CPE-approved: 10 CPE Points

Date: 16th August 2016
Venue: DoubleTree Hotel, Kuala Lumpur

Download Seminar Brochure

COURSE BACKGROUND

Shariah non-compliance risk has been defined as ‘The risk that arises from the bank’s failure to comply with the Shariah rules and principles determined by the relevant Shariah regulatory councils.’ (Islamic Financial Services Board, IFSB)

By offering Islamic banking, investment and risk-management and protection products, Shariah non-compliance is a fundamental, inherent and key risk for Islamic financial institutions of all kinds. The concept of non-compliance, and the onus it creates has recently become more significant by being explicitly tied to important Islamic banking legislation, such as Islamic Financial Services Act 2013. Indeed, Section 28 (3) of IFSA 2013 sets out clearly the obligations and responsibilities of a financial institution in the case Shariah non-compliance, and the subsequent reporting and disclosure process. Penalties and consequences of not following Shariah non-compliance reporting procedures can be severe.

This timely one day course sets out Shariah compliance and governance requirements under Malaysian law. It also discusses the role of compliance and Shariah compliance functions, as well as specifically the obligations, procedures, disclosure and reporting requirements and rectification options in the case of Shariah non-compliance.

HIGHLIGHTS

  • Shariah Compliance and Governance Requirements within an IFI
  • Regulatory Issues of Shariah Governance and Shariah Non-Compliance Reporting
  • Procedures, Obligations and Responsibilities of Shariah Non Compliance Reporting (SNC)
  • Rectification Options in the Situation of SNC

KEY OUTCOMES

  • Assessing the execution of Shariah risk, governance and compliance functions across banking products and businesses
  • Understanding standards and the legal framework for Shariah non-compliance reporting (SNC), and identify legal obligations and responsibilities
  • Defining the course of action at the point of identification of SNC, and the rectification plans and options available to the bank at that point

For enquiries please contact:

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt

Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Govina Selvanthran

Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More

AGENDA

Session One (9:15 – 10:30): Review of Shariah Compliance for Islamic Financial Institutions and Introduction of Shariah Non Compliance (SNC)
  • Review of Islamic Finance and Shariah compliance
  • The framework of Shariah compliance
  • Types and common examples of Shariah risks inherent in Islamic financial institutions: product flaws in documentation or structure, GAP between Islamic Banks’ practices & regulatory requirement and potential flashpoints
  • Introducing important concepts of Shariah noncompliance
  • The significance of the Shariah Governance Framework (SGF) on Shariah non-compliance risk management and reporting

Associate Professor Dr Rusni Hassan — Deputy Dean IIUM Institute of Banking & Finance and member, Shariah Advisory Council, Bank Negara Malaysia

Coffee & Networking (10:30 – 11:00)
Session Two (11:00 – 12:00): Shariah Compliance and Governance Requirements for Shariah Non-Compliance Risk Management and Reporting
  • Examining regulatory requirements on Shariah compliance and Shariah non-compliance reporting under the following:
    • Central Bank Act 2009
    • Islamic Financial Services Act 2013
    • AAOIFI
    • IFSB
  • Implications of each for Shariah audit and Shariah risk management functions and Shariah non-compliance reporting within an Islamic financial institution
  • Obligations, responsibilities of boards and directors and senior bank management, and penalties for Shariah noncompliance infringement

Prof Dr Mohamad Akram Laldin — Executive Director, International Shari'ah Research Academy for Islamic Finance (ISRA)

Session Three (12:00 – 12:30): Examining the Role of Compliance & Shariah Compliance Unit in Islamic Financial Institutions
  • Analysing product endorsement and approval procedures
  • Systems, procedure and documentation processes
  • Disclosure and reporting requirements in Malaysia: Practical issues with Shariah non-compliance reporting within Islamic Banks
  • Undertaking and building effective risk assessment and management practices
  • Rectification options and procedure, non-halal income management and purification
  • Hot spot areas or activities which will trigger Shariah noncompliant risk in Islamic banks

Muhd Ramadhan Fitri Ellias — Executive Vice-President and Head of Product Maybank Islamic

Luncheon (12:30 – 14:00)
Session Four (14:00 – 15:00): Assessing Procedures, Obligations and Responsibilities of Shariah Non-Compliance Reporting
  • Identifying the obligations of Islamic Financial Institutions for Shariah non-compliance reporting
  • Practical issues and procedures for SNC reporting
  • Information disclosure requirements for SNC
  • Rectification measures: options open to an Islamicfinancial institution
  • Effects and consequences of failure to report SNC

Ahmad Arif Bin Mohd Arshad — Head, Group Shariah Business Compliance, Group Risk, Compliance & Credit Management, RHB Islamic

Session Five (15:00 – 16:00): Managing Shariah Non-Compliance Risk as Part of an Overall Risk Management Programme for Islamic Banks
  • Review of common risks Islamic financial institutions are exposed to: rate of return risk, displaced commercial risk, credit, market, liquidity and operational risk
  • Where and how Shariah risk and Shariah non-compliance specifically fits into operational risk management systems
  • Risk identification, risk reporting and management in Islamic financial institutions: role of Shariah audit and internal audit
  • Examples of specific risks in Islamic finance products

Ahmad Arif Bin Mohd Arshad — Head, Group Shariah Business Compliance, Group Risk, Compliance & Credit Management, RHB Islamic

Coffee and Networking (16:00)

EXPERT COURSE DIRECTORS

Associate Professor Dr Rusni Hassan Deputy Dean IIUM Institute of Banking & Finance and member, Shariah Advisory Council, Bank Negara Malaysia

Dr Rusni Hassan is an associate professor and the deputy dean at the IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM). She graduated with a Bachelor of Laws degree (Honors), a Bachelor of Laws degree (Shariah) (First Class), a Master of Comparative Laws degree and a PhD in law. She is a member of the following: Shariah Advisory Council for Bank Negara Malaysia, Association of Islamic Banking Institutions Malaysia, Shariah Committee for HDFC and HDC Maldives. She is a registered Shariah advisor with the Securities Commission Malaysia and is the secretary for the Association of Shariah Advisors in Islamic Finance Malaysia and the International Council of Islamic Finance Educators.

Dr Rusni has spoken extensively in seminars, workshops, conferences and trainings on various Islamic finance issues. Her publications include books on Islamic banking and Takaful, Islamic banking under Malaysian law, corporate governance of Islamic financial institutions and many articles in local and international journals. She has received awards such as ‘Promising Researcher’ at IIUM in 2012. Her works and contribution to Islamic finance have also been recognized internationally when she was listed among the ‘Top 10 Women in Islamic Finance’ by CPI Financial in 2013. She also received the award of ‘Most Talented Women Professional in Islamic Banking’ at the Asia Islamic Banking Excellence Awards, CMO Asia in 2014.

Ahmad 'Arif Mohd Arshad Head, Group Shariah Business Compliance, Group Risk, Compliance & Credit Management RHB Islamic

Ahmad ‘Arif bin Mohd Arshad has been Head of Shariah Compliance of RHB Bank Berhad (RHBB) in Kuala Lumpur since 2014, prior to assuming his new role as Head of Group Shariah Business Compliance of RHBB in Jan 2016. He is a Shariah expert practitioner with more than ten years of experience in Islamic banking and finance. Formerly, he served the industry as the Head of Shariah Supervision at Al-Rajhi Bank (Malaysia), Acting Head of Shariah at HSBC Amanah (Malaysia) and Head of Syariah Advisory at Bank Islam Malaysia Berhad. As an expert in his field, Ahmad ‘Arif had involved in multiple roles of Shariah functions and obtained numbers of achievements. This included his critical role in the development of innovative Shariah solutions for RHB Islamic Bank, Al Rajhi Bank (Malaysia), HSBC Amanah (Malaysia) and Bank Islam Malaysia Berhad. He is also experienced in conducting Shariah compliance review and Shariah risk assessments; experienced in Shariah businesses product developments, operations and other support divisions including the enhancement and assessment of operating manuals; he assisted various business units with risk mitigation strategies and practical solutions especially in rectifying Shariah audit findings involving financial impacts arising from Shariah non-compliance incidences; apart from various other involvements and achievements. Ahmad ‘Arif pursued his studies in Islamic Law and Jurisprudence at Al- Azhar University, before pursuing his master’s coursework in Fiqh and Usul Fiqh at the International Islamic University of Malaysia.

Prof Dr Mohamad Akram Laldin Executive Director International Shari'ah Research Academy for Islamic Finance (ISRA)

Prof. Dr. Mohamad Akram is currently the Executive Director of International Shari’ah Research Academy for Islamic Finance (ISRA) and Professor at International Centre for Education in Islamic Finance (INCEIF). Prior to joining ISRA he was an Assistant Professor at the Kulliyah of Islamic Revealed Knowledge and Human Sciences, International Islamic University, Malaysia (IIUM). In the period 2002-2004, he was a Visiting Assistant Professor at the University of Sharjah, Sharjah, United Arab Emirates. At present, he is the Deputy Chairman of Bank Negara Malaysia Shari’ah Advisory Council, Member of Law Harmonisation Committee Bank Negara Malaysia, Member of Shari’ah Board of Employees Provident Fund Malaysia (EPF), Member of Shariah Supervisory Council of Labuan Financial Services Authority (FSA), Member of Shariah Advisory Board ZI Shariah Advisory, Member of Thomson Reuters Islamic Benchmark (IIBR), Member of Shariah Advisor of Dar Al Takaful, Dubai, Member of Shariah Advisory Board, Eco Islamic Bank, Republic of Kyrgstan, Member of Shariah Advisory Council International Islamic Financial Market (IIFM),Bahrain, Member of Shariah Advisor of National Takaful Company PSC, Watania, Abu Dhabi, Member Financial Regulation Advisory Council of Experts (FRACE), Central Bank of Nigeria, and other Boards locally and internationally.

Muhd Ramadhan Fitri Ellias Executive Vice-President and Head of Product Maybank Islamic

Muhd Ramadhan is currently the executive vice-president and the head of product management at Maybank Islamic. Prior to his appointment as the head of product management, he was the head of Shariah management overseeing all Shariah-related matters pertaining to the retail and global banking business within the Maybank Group. He is instrumental in developing Shariah compliance control frameworks and policies for the Islamic banking business of group. He also oversees Maybank Islamic’s Zakat and Waqfbased programs. Prior to Maybank Islamic, Muhd Ramadhan served as a senior manager at the Islamic Markets department of Maybank Investment Bank. He also formerly served as a manager in Shariah advisory at RHB Islamic. Muhd Ramadhan started his career as an assistant lecturer of Islamic economy at Universiti Malaya. Muhd Ramadhan has presented several papers at local and international conferences and contributes regularly to Islamic banking columns in a few local newspapers. He also appears on several television programs to talk about various topics related to Islamic finance. Muhd Ramadhan holds a Bachelor’s degree in Shariah (Fiqh and Usul) (1st class honors) from the Universiti Malaya and a Master’s degree in Fiqh and Usul Fiqh from the International Islamic University Malaysia.

Who Will Benefit?

  • Internal Shariah auditors
  • Shariah department managers and key staff
  • Accountants & auditors
  • Compliance managers
  • Product development managers
  • Regulators and supervisors
  • Credit & risk management professionals
  • Consultants

For enquiries please contact:

Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44

Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810

For sponsorship & speaking opportunities:

Andrew Tebbutt

Managing Director
[email protected]
Direct Line: +603 2162 7802

For marketing and media enquiries

Govina Selvanthran

Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22

If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More

About Us

REDmoney Events designs, organizes and hosts industry-leading conferences, forums, roadshows and seminars focusing on the Islamic financial markets across a global, regional and national level.

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