TAWARRUQ & BEYOND TAWARRUQ: Application, Documentation, Shariah Non-Compliance Risk & Alternatives

About The Seminar

Tawarruq is the preferred choice of contract for bankers not just for working capital requirements, but also for asset financing, mortgages, trade financing, fixed deposits, structured investments, and even savings account. In the last decade, Malaysia has experienced a rapid growth in Tawarruq based products for this reason. Hence, ensuring Shariah compliance with the policy document of Bank Negara is of paramount importance for all Islamic financial institutions (IFIs). This seminar offers comprehensive, concise and insightful update on the Shariah standards and operational requirements as well as legal documentation of Tawarruq and Tawarruq-based products. On the contrary, Tawarruq has also attracted criticisms as it imitates the conventional structures. Hence, we explore on how we can move beyond Tawarruq by evaluating some alternatives in the final session of the seminar to ignite further discussion amongst industry practitioners to drive innovation in the industry.

KEY LEARNING OUTCOMES

By the end of this course delegates will be able to:

Assess the key Shariah and operational requirements for Tawarruq
Examine the legal documentations for Tawarruq
Formulate Tawarruq-based products with other contracts/concepts
Identify the gap between the Shariah standards and the existing practices
Prepare actionable steps to deal with Shariah non-compliance incidents in Tawarruq
Explore alternative concepts to move beyond Tawarruq

Seminar Agenda

8:30 am – 9:00 am

Registration & Coffee

9:00 am – 10:30 am

Session 1: Overview & Application of Tawarruq in Islamic Financial Institutions

Tawarruq phenomenon in IFIs
Overview of Tawarruq Concept
Contemporary Shariah resolution on Tawarruq
Application of Tawarruq in IFIs

10:30 am – 11:00 am

Coffee

11:00 am – 1:00 pm

Session 2: Shariah & Operational Requirements of Tawarruq

Structure of BNM’s Policy Document on Tawarruq
Shariah Requirements
Arrangement of Tawarruq with other contracts/concepts
- Wakalah
- Dual agency
- Wa’d
- Ibra’
- Ta’widh and gharamah
Operational Requirements

1:00 pm – 2:00 pm

Lunch & Prayer Break

2:00 pm – 3:30 pm

Session 3: Legal Documentation & Shariah Non-Compliance Risk in Tawarruq

Legal documentation in Tawarruq
Common pitfall in Tawarruq legal documentation
Shariah non-compliance risk in Tawarruq
Dealing with Shariah non-compliance incidents in Tawarruq

3:30 pm – 3:45 pm

Coffee

3:45 pm – 5:00 pm

Session 4: Criticisms over the Practice of Tawarruq and its Alternatives

Criticisms over the practice of Tawarruq
Exploring alternative concepts of Tawarruq:
- Moving beyond CASA Tawarruq – CASA-based Salam
- Moving beyond Tawarruq personal financing: Case study of education financing based on Ijarah al-khadamat
- Moving beyond Tawarruq home financing
- Moving beyond Tawarruq-based corporate financing

Where & When

Date: 20^th February 2019
Venue: Kuala Lumpur

Who Should Attend?

Product Development Staff
Shariah Committee and Shariah Department
Shariah Audit & Shariah Compliance Review Team
Internal Audit
Risk Management
Corporate lawyers
Senior company management
Regulatory authorities

Fee

Early bird : RM 1,799
Register before 21^st January 2019
Standard : RM1,999 per delegate
2 delegates (5% Discount) : RM1,899 per delegate
3 delegates (15% Discount) : RM1,699 per delegate
4 delegates (20% Discount) : RM1,599 per delegate
5 delegates (30% Discount) : RM1,399 per delegate

In-house/group training

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.
In-House Training Brochure

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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 opportunities:

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

For speaking opportunities:

Suhail Sinnalebbe
Senior Events Producer
[email protected]
Direct Line: +603 2162 7800 ext 43

For marketing and media enquiries

Clement Anthony
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 22

Where & When

Date: 20^th February 2019
Venue: Kuala Lumpur

Who Should Attend?

Product Development Staff
Shariah Committee and Shariah Department
Shariah Audit & Shariah Compliance Review Team
Internal Audit
Risk Management
Corporate lawyers
Senior company management
Regulatory authorities

Fee

In-house/group training

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./p>

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

About The Seminar

KEY LEARNING OUTCOMES

By the end of this course delegates will be able to:

Assess the key Shariah and operational requirements for Tawarruq
Examine the legal documentations for Tawarruq
Formulate Tawarruq-based products with other contracts/concepts
Identify the gap between the Shariah standards and the existing practices
Prepare actionable steps to deal with Shariah non-compliance incidents in Tawarruq
Explore alternative concepts to move beyond Tawarruq

Seminar Agenda

8:30 am – 9:00 am

Registration & Coffee

9:00 am – 10:30 am

Session 1: Overview & Application of Tawarruq in Islamic Financial Institutions

Tawarruq phenomenon in IFIs
Overview of Tawarruq Concept
Contemporary Shariah resolution on Tawarruq
Application of Tawarruq in IFIs

10:30 am – 11:00 am

Coffee

11:00 am – 1:00 pm

Session 2: Shariah & Operational Requirements of Tawarruq

Structure of BNM’s Policy Document on Tawarruq
Shariah Requirements
Arrangement of Tawarruq with other contracts/concepts
- Wakalah
- Dual agency
- Wa’d
- Ibra’
- Ta’widh and gharamah
Operational Requirements

1:00 pm – 2:00 pm

Lunch & Prayer Break

2:00 pm – 3:30 pm

Session 3: Legal Documentation & Shariah Non-Compliance Risk in Tawarruq

Legal documentation in Tawarruq
Common pitfall in Tawarruq legal documentation
Shariah non-compliance risk in Tawarruq
Dealing with Shariah non-compliance incidents in Tawarruq

3:30 pm – 3:45 pm

Coffee

3:45 pm – 5:00 pm

Session 4: Criticisms over the Practice of Tawarruq and its Alternatives

Criticisms over the practice of Tawarruq
Exploring alternative concepts of Tawarruq:
- Moving beyond CASA Tawarruq – CASA-based Salam
- Moving beyond Tawarruq personal financing: Case study of education financing based on Ijarah al-khadamat
- Moving beyond Tawarruq home financing
- Moving beyond Tawarruq-based corporate financing

Seminar Speaker

Dr. Mohammad Mahbubi Ali
Head of Economics, Finance, Awqaf and Zakat Unit International Institute of Advanced Islamic Studies (IAIS) Malaysia

Dr. Mohammad Mahbubi Ali is head of economics, finance, awqaf and zakat unit cum research fellow at the International Institute of Advanced Islamic Studies (IAIS) Malaysia. He also serves as a Shariah committee member of Affin Islamic Bank. Previously, he was a researcher at the International Shariah Research Academy for Islamic Finance (ISRA). During his stint at ISRA, he had contributed to numerous ISRA’s research publications, mainly involving in the drafting of BNM Shariah Standards. He also served as Shariah consultant for ZICO Shariah Advisory Bhd and Roosdiono & Partners, Jakarta. He was a lecturer at the University of Kuala Lumpur and Unitar International University. He received a PhD in Islamic Banking and Finance from the IIUM Institute of Islamic Banking and Finance, Malaysia. He holds a bachelor degree in Shariah Business and Financial Management from the Islamic Business School, Tazkia Indonesia and Chartered Islamic Finance Professional (CIFP) from INCEIF, The Global University in Islamic Finance, Malaysia.

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By completing, signing and sending us this registration form you are confirming delegate places on the seminar. You are also confi rming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation: If delegates cannot attend the seminar replacement participants are always welcome. Otherwise delegates must request in writing (letter, fax or email) to cancel registration/s or transfer to a diff erent seminar at least 21 days before the seminar start date to be eligible for a refund, less a 5% administration fee. Delegates who cancel within 21 days of the seminar start date, or who do not attend, are liable to pay the full seminar fee and no refunds will be given. Instead fees will be converted to a IFN Seminars voucher equivalent to the original fee, less a 15% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a seminar is postponed for whatever reason delegate bookings will be automatically transferred to the new seminar date. Delegates who wish to transfer to a diff erent seminar will be subject to the same terms as above and charged the diff erence in seminar fees. No refunds or seminar vouchers will be issued for a no-show. Payment Terms: All seminars fees are to be received within 14 days of invoice date. REDmoney shall receive the full seminar fee with no deductions of any description. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the sponsoring organization.

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For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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 opportunities:

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

For speaking opportunities:

Suhail Sinnalebbe
Senior Events Producer
[email protected]
Direct Line: +603 2162 7800 ext 43

For marketing and media enquiries

Clement Anthony
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 22