Fee per participant: RM2,600/US$700
Please note that the Ringgit price is applicable to Malaysia-domiciled participants only. Discounts are available for group bookings. Please contact us for more details.
Shariah Non-Compliance Risk Management & Reporting for Financial Institutions
Date: 11th February 2026
Venue: DoubleTree by Hilton Kuala Lumpur
Classroom Training
WHY THIS COURSE?
In Malaysia’s vibrant Islamic banking industry, effective management of Shariah non-compliance risk is crucial for maintaining regulatory integrity and public confidence. This comprehensive 1-day course empowers Islamic finance professionals to identify, manage, and report SNC risks in line with Bank Negara Malaysia’s Shariah Governance Policy Document, IFSB and AAOIFI standards. Participants will explore practical tools, real-life case studies, and proven frameworks to enhance Shariah governance and reporting efficiency within their institutions.
- By the end of this training, participants will be able to:
- Understand the Regulatory Foundations of SNC Risk
- Explain the key principles of Shariah Non-Compliance as defined under Bank Negara Malaysia’s Shariah Governance Policy Document and related frameworks.
- Identify Sources and Triggers of SNC Events
- Recognize how SNC risks arise across various Islamic banking activities, including financing, deposits, treasury operations, and product structuring.
- Apply Effective SNC Risk Management Practices
- Develop and implement frameworks for identifying, assessing, mitigating, and monitoring SNC risks in alignment with enterprise risk management practices.
- Execute Proper SNC Reporting and Escalation Procedures
- Prepare internal and external reports that meet BNM expectations, ensuring timely escalation, documentation, and regulatory compliance.
- Manage SNC Incidents and Rectification Processes
- Design appropriate remediation and purification steps following an SNC event, including communication with Shariah Committees and regulators.
- Strengthen Organizational Shariah Governance Culture
- Promote accountability, transparency, and continuous improvement in Shariah risk management and reporting across departments and functions.
- Understand the Regulatory Foundations of SNC Risk
AGENDA
Session 1: Opening & Introduction to SNC Risk
9:00am – 10:15am
- Welcome & course objectives
- Overview of Malaysia’s Islamic Financial Regulatory Landscape
- Role of Bank Negara Malaysia and SAC of BNM
- Shariah Governance Policy Document (SGPD) 2019
- Understanding Shariah Non-Compliance (SNC): Definition & Implications
- Difference between Shariah-compliant and non-compliant activities
- Key SNC risk sources: operational lapses, product design, system errors, etc.
- Case study: Real-world SNC incidents in Malaysian Islamic banks
Learning Outcome: Participants can identify SNC events and understand their regulatory context.
Session 2: Shariah Non-Compliance Risk Management Framework
10:30am – 12:30pm
- Risk Management concepts within Islamic finance
- Integration of SNC risk into enterprise risk management frameworks
- BNM’s expectations for SNC risk management
- Risk identification, assessment, mitigation, and control
- Developing SNC risk registers
- Workshop: Identifying and mapping SNC risks in banking operations
- Key Roles:
- Shariah committee
- Management
- Compliance & risk units
Learning Outcome: Understand how to structure an SNC risk management framework consistent with BNM’s Shariah Governance Policy Document.
Lunch & Networking
12:30pm – 1:30pm
Session 3: Shariah Non-Compliance Reporting & Escalation
1:30pm – 3:15pm
- Reporting obligations under BNM’s Shariah Governance Policy Document
- Internal Reporting Flow:
- Business Unit → Shariah Department → Shariah Committee → Board/BNM
- External Reporting to Bank Negara Malaysia
- SNC event timeline & documentation requirements
- Financial rectification and purification processes
- Template Review: Sample SNC reporting format (internal + BNM)
- Case Discussion: Effective SNC reporting in practice
Learning Outcome: Participants learn how to prepare compliant and transparent SNC reports.
Session 4: Managing SNC Incidents and Remediation
3:30pm – 4:30pm
- Root cause analysis for SNC incidents
- Remedial action planning and purification processes
- Communication with stakeholders (board, BNM, SAC)
- Continuous improvement and lessons learned integration
Learning Outcome: Participants can design effective follow-up and rectification strategies after SNC events.
Session 5: Assessment, Discussion & Wrap-Up
4:30pm – 5:00pm
- Recap: Key takeaways
- Group Discussion: Common challenges in SNC Risk & Reporting
- Q&A
- Quiz
- Certificate presentation
EXPERT COURSE DIRECTOR
Prof. Dr. Rusni Hassan is an esteemed leader in Islamic finance, notably serving as the Dean at the IIUM Institute of Islamic Banking and Finance. Her distinguished career is marked by a profound influence on academic, regulatory, and practical aspects of Islamic finance globally. Her leadership extends beyond finance to influential positions on Shariah advisory councils and boards of directors for various organizations, reflecting her versatile expertise and commitment to integrating Islamic principles in broader economic practices.
A prolific author, she has contributed over a hundred scholarly articles and numerous seminal books that have significantly shaped the legal and regulatory landscape of Islamic finance worldwide. A passionate academician, she has mentored countless students and young professionals, emphasizing the importance of ethical practices and the integration of Islamic values in business and finance and nurturing the next generation of Islamic finance professionals and fostering a well-rounded and principled financial leadership. Her works and contribution to Islamic Finance has been internationally recognized by the Government of Maldives when she was awarded the National-Recognition for Outstanding Contribution of Females to Develop and Sustain Islamic Finance Industry in Maldives in 2018. Her achievements span academic contributions, regulatory enhancements, and influential leadership, making her invaluable to the global Islamic finance community and an inspiring leader whose work continues to impact the academia and industry profoundly.
TARGET AUDIENCE
- Shariah officers and advisors
- Risk and compliance professionals
- Internal auditors and governance officers
- Islamic banking operations and management staff
- Regulators and supervisors
- Consultants and advisors
FEE
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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.
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