COURSE BACKGROUND
Operational risk in conventional banking is relatively easy to define, identify and measure. Trying to undertake a similar exercise within an Islamic financial institution is significantly more challenging. Heightened documentation risk – the risk of the wrong documentation being used, or being misused, or applied incorrectly is a significant risk for an Islamic bank, and one that regulators are taking notice of. Through the very nature of their structure, composition, philosophy and business activities – the avoidance of uncertainty and the adherence to risk-sharing principles – exposure to legal risk is very real for Islamic financial institutions, including that of cross-border legal risk.
Shariah risk is unique to Islamic banking and has been documented extensively, but as regulation develops this remains a challenge for banks to measure and manage. Collectively, these risks represent a very genuine challenge for Islamic banking operations, customers and stakeholders and require careful identification, mitigation and management.
KEY LEARNING OUTCOMES
- A reminder of the unique operational risks facing Islamic banking and finance: legal and Shariah in particular
- Defining and managing cross-border legal risk in the context of Islamic finance
- Assessing instances of legal risk in Islamic banking and finance and taking steps to mitigate such risk
- Identifying and discussing common instances of documentation risk in Islamic finance and how it can be managed
- Examining the latest permutations of local regulation and requirements relevant to legal risk: Islamic Financial Services Act 2013 and Bank Negara Malaysia policy documents, guidelines and Shariah standards
- Managing Shariah risk: reiterating where Shariah risk occurs and manifests in an Islamic financial institution
- Building a robust and effective legal and Shariah risk management capability within an Islamic financial institution
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
- 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
- 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
- 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
Mohd Johan Lee — Managing Partner, J Lee & Associates
- 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
EXPERT COURSE DIRECTORS
Johan is the managing partner of J. Lee & Associates, a legal firm in Malaysia. He graduated with LLB (Hons) degree from International Islamic University Malaysia. He also holds a Master of Comparative Laws degree, a post-graduate Diploma in Shariah and Legal Practice both of which from International Islamic University Malaysia and, an MA in Economics for Competition Law from King’s Collage London. He is currently a qualified member of the Chartered Institute of Arbitrators, UK as well as a mediator of the Malaysian Bar. He is an advocate and solicitor of the High Court of Malaya. Proficient in English, Malay language, Mandarin, he is also the first Chinese origin Shariah practitioner ever admitted by the Shariah court. His current practice includes corporate and commercial law, competition law, compliance and Islamic corporate finance related matters. He is instrumental in developing Islamic banking, Takaful and Islamic corporate finance documents and exercises for several financial institutions as well as corporate and governmental entities in Malaysia. Johan lectured in the law faculty of International Islamic University Malaysia since 1999 for both undergraduate and postgraduate law programmes. He has taught for a special exclusive diploma programme in Islamic Banking, jointly offered by IIUM and the Bar Council. He also lectures occasionally in various other local universities, Bank Negara Malaysia (BNM), as well as Institute Latihan Kehakiman (ILKAP) and Jabatan Kehakiman Syariah Malaysia (JKSM) for both civil courts and Shariah courts judges concerning Islamic banking. In 2006, he was a visiting scholar to the Asian Law Centre of the University of Washington. He is currently a Shariah consultant to governmental agencies as well as government-funded banks. He is the author of the book ‘Legal Documentation for Islamic Banking’ published by the IBFIM, and co-author of an upcoming book ‘Islamic Financial Services Act 2013: Commentaries’ to be published and launched by the Current Law Journal. Johan is now a member of the Shariah Advisory Council (SAC) of the Association of Islamic Banks Malaysia (AIBIM and is a consultant to new law practices in Malaysia, Brunei, Singapore, Indonesia and the UK.
Mian Muhammad Nazir is an accomplished and prominent Shariah expert/lawyer in the field of Islamic banking and finance. He specializes in retail, corporate, syndications, project finance, Sukuk, securitizations, Islamic investment funds, Islamic trusts, swaps and derivatives, insurance and Islamic finance legislation and regulations. He has played a leading role in providing technical support to Islamic banking and finance industry through innovation in product development. Nazir holds LL.M in Commercial Law from the University of Cambridge, United Kingdom and LL.B (Hons) Sharia and Law (with distinction) from International Islamic University, Pakistan and B.A Social Sciences and Islamic Jurisprudence from International Islamic University, Pakistan. In addition to his qualifications he has received intensive training in international financial laws including securitization, swaps and derivatives. Nazir currently is Chief Executive Officer of Dar Al Sharia Islamic Finance Consultancy LLC, a subsidiary of Dubai Islamic Bank, United Arab Emirates. He also served as Legal Advisor to Dallah Al Baraka, Kingdom of Saudi Arabia, one of the largest Saudi conglomerates with operations in banking, finance, media and other businesses. He held the position of Director Law and Regulatory Affairs, Pakistan Telecommunication Authority where he advised on telecommunication regulations in addition to assisting Government of Pakistan in preparing the Electronic Transactions Ordinance, 2000. Nazir is Life Member, High Court Bar Association and Cambridge Commonwealth Society and various other professional associations. He is fluent in English, Arabic and Urdu.
Reizal Amiruddin has been spearheading the Shariah Department at AmBank Islamic Berhad for the last decade. He commenced his career in the public sector as Assistant Director in the Ministry of Domestic Trade & Consumer Affairs before embarking in banking. He brings with him a total of 15 years’ experience in the banking industry in the areas of industrial relations, internal control, and Shariah. He was instrumental in the development of theShariah Governance Structure in AmBank Group pursuant to Bank Negara Malaysia’s Shariah Governance Framework. His other contributions include as curriculum panel member for Shariah Governance and Compliance for Islamic Financial Institutions Learning Programme by Asian Institute of Finance (AIF), as Bank Negara Malaysia’s review panel for Shariah Standards, and part of Industry Workshop on the Development of Bachelor in Islamic Finance Programme by ISRA Consultancy. He is an associate of the Association of Shariah Advisor in Islamic Finance Malaysia (ASAS), associate of the Asian Institute of Chartered Bankers (AICB), member of Shariah Governance Committee of Association of Islamic Banking Institutions Malaysia (AIBIM) and life member of Old Putera Association (OPA). Reizal holds a Bachelor’s degree in Business Administration from Washington State University (WSU), an MBA from International Islamic University Malaysia (IIUM), Shariah Studies from University of Malaya (UM), Executive Banker from Asian Institute of Chartered Bankers (AICB), and is pursuing Professional Banker from Asian Banking School (ABS).
Who Will Benefit?
- The seminar will be highly beneficial to anyone in a bank or financial institution involved in the structuring, development, marketing and risk management of Islamic financial products, and in particular, functions such as legal, compliance and audit.
- Compliance officers and in-house counsel
- Private practice lawyers
- Islamic bankers and management
- Shariah advisors, officers, control and review staff
- Risk managers
- Product development officers
- Operations managers
- Consultants and advisors
- Financial audit and review team members
- Regulators and supervisory bodies
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