Hajah and Darurah

Hajah and Darurah:
Key Shariah and Operational Issues for Islamic Financial Institutions

Date: 29^th May 2023
Venue: Kuala Lumpur

Classroom Training

Dr Rusni Hassan Associate Professor and Deputy Dean IIUM Institute of Islamic Banking and Finance (IIiBF)

COURSE BACKGROUND

Hajah and Darurah are increasingly important principles in Islamic finance. Literally translated as ‘need’ and ‘dire necessity’, Hajah and Darurah represent an important and fundamental shift in the thinking surrounding the development and provision of Islamic financial products. Implications for Islamic financial institutions could potentially be far-reaching, with the most significant effects being seen in Shariah, product development, risk management, credit, and recovery.

Following the release of Bank Negara Malaysia’s proactive late-2022 Exposure Draft, it is clear the implementation of Hajah and Darurah is now very much on the regulatory radar. As such, what do banks, Takaful companies and other Islamic financial institutions need to know, and what are the key operational issues of implementing Hajah and Darurah into business lines and product offerings? What is the position and role of risk and Shariah, and how are Hajah and Darurah likely to influence product development and risk management?

In this concise, one-day session we will identify real-life issues, questions and challenges associated with the implementation of Hajah and Darurah. More importantly, the program will offer practical solutions for Islamic financial institutions looking to understand more about the application and implementation of Hajah and Darurah.

Key learning Outcomes
- Understand what the principles of Hajah and Darurah mean, and why they are important for the Islamic financial services industry
- Examine the current regulatory framework for the implementation of Hajah and Darurah, including salient points of the recent BNM Exposure Draft
- Discuss the position and role of Shariah regarding the of implementation of Hajah and Darurah in Islamic financial products and services
- Establish operational frameworks for the assessment, deduction and implementation of Hajah and Darurah
- Assess real-life product cases and practical implementation of Hajah and Darurah within the business lines of an Islamic financial institution
- Identify key issues for Shariah compliance, audit and reporting pertaining to Hajah and Darurah

Fee

1 participant: RM2,250/$600
2 participants: RM4,500/$1,200
3 participants: RM6,750/$1,800
4 participants: RM9,000/$2,400
5 participants: RM11,250/$3,000

Discounts are available for group bookings. Please contact us for more details.

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.
Learn More

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

Hajah and Darurah:
Key Shariah and Operational Issues for Islamic Financial Institutions

Date: 29^th May 2023
Venue: Kuala Lumpur

Classroom Training

COURSE BACKGROUND

Key learning Outcomes
- Understand what the principles of Hajah and Darurah mean, and why they are important for the Islamic financial services industry
- Examine the current regulatory framework for the implementation of Hajah and Darurah, including salient points of the recent BNM Exposure Draft
- Discuss the position and role of Shariah regarding the of implementation of Hajah and Darurah in Islamic financial products and services
- Establish operational frameworks for the assessment, deduction and implementation of Hajah and Darurah
- Assess real-life product cases and practical implementation of Hajah and Darurah within the business lines of an Islamic financial institution
- Identify key issues for Shariah compliance, audit and reporting pertaining to Hajah and Darurah

Who Will Benefit?

This program will be beneficial to anyone within a financial institution responsible for product development, risk management and compliance, and Shariah risk, audit and compliance.
- Product development professionals
- Shariah committee and Shariah department
- Shariah risk, audit and compliance/review professionals
- Internal audit and compliance
- Risk management professionals
- Recovery and credit management professionals
- Senior management and board directors
- Regulatory & supervisory professionals

Fee

1 participant: RM2,250/$600
2 participants: RM4,500/$1,200
3 participants: RM6,750/$1,800
4 participants: RM9,000/$2,400
5 participants: RM11,250/$3,000

Discounts are available for group bookings. Please contact us for more details.

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.
Learn More

AGENDA

9.00am to 11.00am Session 1

Introduction to Hajah and Darurah – Definitions, Concepts and the Regulatory Environment

Identifying and discussing important definitions for understanding Hajah and Darurah
The important concepts of Mafsadah and Maslahah and how Hajah and Darurah are related
Outlining the BNM exposure draft with reference to Hajah and Darurah, and assessing the evolving regulatory framework
Why do banks and financial institutions need to implement Hajah and Darurah into their businesses, and what are the obligations of an Islamic financial institution?
What is the position and role of Shariah in the implementation of Hajah and Darurah?
Discussing the processes and procedures facilitating Shariah decision making with reference to Hajah and Darurah

11.00am to 11.30am Coffee

11.30am to 1.00pm Session 2

Governance, Operational Issues and Practical Implementation of Hajah and Darurah within an Islamic Financial Institution

Assessing the practical implementation of Hajah and Darurah within the business of an Islamic financial institution
The role of a financial institution’s board of directors, management and Shariah committee with reference to the practical implementation of Hajah and Darurah
How are Hajah and Darurah practically applied to common Islamic financial products and business lines?
Establishing operational frameworks for the assessment, deduction and implementation of Hajah and Darurah, including who should be involved
Inter-group uses and applications of Hajah and Darurah

1.00pm to 2.00pm Lunch

2.00pm to 3.30pm Session 3

Key Shariah Parameters and Issues for the Implementation of Hajah and Darurah

What should be key parameters for the application of internal and external rules with reference to Hajah and Darurah within an Islamic financial institution?
Key areas of concern for Shariah risk, audit and Shariah non-compliance reporting with reference to Hajah and Darurah
Ensuring Shariah compliance throughout product development and facilitation, with reference to Hajah and Darurah

3.30pm to 4.00pm Coffee

4.00pm to 5.00pm Session 4

Examples of Applying Hajah and Darurah to Islamic Financial Product Structures

The application and implementation of Hajah and Darurah to a Takaful operator and Takaful products
The application and implementation of Hajah and Darurah to an Islamic bank and banking products:
- Example: Mudarabah
- Example: Tawarruq

EXPERT COURSE DIRECTOR

Dr Rusni Hassan
Associate Professor and Deputy Dean, IIUM Institute of Islamic Banking and Finance (IIiBF)

Dr Rusni Hassan is an Associate Professor and Deputy Dean at the IIUM Institute of Islamic Banking and Finance (IIiBF). She graduated with LLB (Honours) and LLB (Shariah) (First Class), Master of Comparative Laws (MCL) and Ph.D. in Law. Her areas of specialization include Islamic Banking, Finance and Islamic Documentation, Islamic Capital Markets, Takaful and Islamic Law of Transactions.

Dr Rusni was Coordinator for Research and Publications and Course Coordinator for Islamic Law of Transactions and Islamic Banking and Takaful. She was in the Research Committee for Review of Islamic Banking Laws, Central Bank of Malaysia and an examiner for Financial Planner Association of Malaysia. Presently, she is the examiner for Chartered Institute of Management Accountants (CIMA), United Kingdom. She was a member of Shariah Advisory Council Bank Negara Malaysia and a Shariah Advisor for Association of Islamic Banking Institutions Malaysia (AIBIM). She was a member of the Shariah Committee for HSBC Amanah Malaysia, HSBC Amanah (Takaful) Malaysia, and a registered Shariah Advisor with the Securities Commission. Internationally, she is a Shariah Committee member for Housing Development Corporation and Housing Development Finance Corporation Maldives. In this she has advised numerous Islamic Financial Institutions locally and internationally on Shariah compliance aspects on product development and structuring, legal documentations and Shariah audit. She was involved in the establishment of two main associations in Islamic Finance that are Association of Shariah Advisors in Islamic Finance Malaysia (ASAS) and International Council for Islamic Finance Educators (ICIFE) for which she was in the Pro-tem committee and at present the Secretary for both associations. Dr Rusni is also involved in consultancy work with several private institutions such as Bank Muamalat Malaysia Berhad, Public Bank Berhad, Maybank Islamic Berhad and International Shariah Research Academy for Islamic Finance, Permodalan Nasional Selangor. She has presented papers at many international conferences and seminars locally and abroad and has been invited as an expert and guest speaker 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, Shariah Governance for Islamic Finance Institutions in Kuwait, Malaysia and Indonesia. She has written relevant chapters in books on Islamic Finance and articles in journals, Shariah Law Reports and other publications. She is the winner of several Best Paper Awards from various academic conferences. In 2010, a paper that she co-authored won the Best Paper Award at the 3rd Kuala Lumpur Islamic Finance Forum (KLIFF) Essay Competition on Islamic Finance. Her contributions have been given recognition by the IIUM when she was awarded the Promising Researcher Award in IIUM Quality Day in 2012. Her overall contribution to Islamic Finance is also recognized internationally when she was recognized among the Top 10 Women in Islamic Finance 2013 by the CPI International and in 2014 she received an award as the Most Talented Women Professional in Islamic Banking, Asia Islamic Banking Excellence Awards, by CMO Asia.

Who Will Benefit?

This program will be beneficial to anyone within a financial institution responsible for product development, risk management and compliance, and Shariah risk, audit and compliance.
- Product development professionals
- Shariah committee and Shariah department
- Shariah risk, audit and compliance/review professionals
- Internal audit and compliance
- Risk management professionals
- Recovery and credit management professionals
- Senior management and board directors
- Regulatory & supervisory professionals

REGISTRATION

*Please note there is a fee for attending this program. Please contact us for more details.

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Before completing this registration form please read and understand our booking and cancellation policy. Thank you.

Presentation materials: – important, please read carefully

as part of our sustainability drive, we offer standard access to an electronic version of the course materials. A hard copy of the materials can be provided for a fee: RM100 per copy for Malaysia-based participants; US$150 per copy for all other locations.

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By completing, signing and revised, sent separately us this registration form you are conﬁrming participants on the program. You are also conﬁrming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation Policy: If participants cannot attend the program, replacement participants are always welcome. Otherwise, participants must notify us any of cancellations or requests to transfer to a diﬀerent program at least 14 days before the program date to be eligible for a refund, less a 5% administration on fee. Participants who cancel within 14 days of the program start date are liable to pay the full program fee and no refunds will be given. Instead fees will be converted to a REDmoney Seminars voucher equivalent to the original fee, less a 10% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a program is postponed for whatever reason registrations and fees will be automatically transferred to the new program date. Participants who wish to transfer to a diﬀerent program will be subject to the same terms as above and charged any diﬀerence in fees. No refunds or program vouchers will be issued for a no-show.
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CPE/CPD Applicable:

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