book

Shari'ah Non-compliance Risk Management and Legal Documentations in Islamic Finance

by Ahcene Lahsasna

March 2014

Intermediate to advanced

256 pages

8h 36m

English

Wiley

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1.0. Introduction1.1. Concept of Sharī`ah1.2. Compliance in the Islamic Financial Institutions: An Overview1.3. Concept of Risk1.4. The Concept of Sharī`ah Non-Compliance Risk1.5. Review of the Concept of Sharī`ah Non-Compliance Risk1.6. Features of Sharī`ah Non-Compliance Risk1.7. Sharī`ah Non-Compliance Risk Events1.8. The Sharī`ah Basis for Sharī`ah Compliance
2.0. Introduction2.1. Provisions Unique to Islamic Banks in IFSA2.2. Sharī`ah Compliance in IFSA 20132.3. Classification of Sharī`ah Non-Compliance Risk

3.0. Introduction3.1. The Major Risk Elements of Sharī`ah Non-Compliance Risk3.2. The Causes of Sharī`ah Non-Compliance Risk in Islamic Finance Operations
4.0. Introduction4.1. Tools4.2. Techniques
5.0. Introduction5.1. The Fundamental Islamic Principles in Islamic Contracts5.2. The Fundamental Islamic Financial Transactions Used in Islamic Finance
6.0. Introduction6.1. The First Line of Defence: Product Owner6.2. The Second Line of Defence: Management of the IFI6.3. The Third Line of Defence: Sharī`ah Risk Management6.4. The Fourth Line of Defence: Sharī`ah Management6.5. The Fifth Line of Defence: Sharī`ah Committee/Board6.6. The Sixth Line of Defence: Board of Directors6.7. The Seventh Line of Defence: Sharī`ah Advisory Council (SAC), Bank Negara Malaysia (BNM)/Authorities6.8. The Eighth Line of Defence: Sharī`ah Review6.9. The Ninth Line of Defence: Sharī`ah Audit6.10. The Tenth Line of Defence: Public
7.0. Introduction7.1. Objective7.2. Applicability7.3. Legal Provisions7.4. Reporting Requirements7.5. Reported as Potential Sharī`ah Non-Compliance Event7.6. Submission of Reports on Actual Sharī`ah Non-Compliance Events7.7. Timeline for Actual Sharī`ah Non-Compliance Reporting7.8. Potential Sharī`ah Non-Compliance Event7.9. Timeline for Potential Sharī`ah Non-Compliance Reporting7.10. No Sharī`ah Non-Compliance Event Is Detected7.11. Process Flow for Authentication or Confirmation of Sharī`ah Non-Compliance in the IFIS
8.0. Introduction8.1. Introduction to Legal Documentation8.2. Law Related to Islamic Banking8.3. General Principles in Legal Documentation8.4. Legal Documentation: Definition and Sharī`ah Concern8.5. Incorporation of Sharī`ah Requirements into Legal Documentation8.6. The Main Functions of the Legal Documentation8.7. Areas in Legal Documentation under Consideration and Review8.8. Potential Area of Sharī`ah Non-Compliance Risk
9.0. Introduction9.1. Structure of the Legal Agreement/Contract9.2. Tips for Drafting Text and Additional Clauses9.3. Legalistic Style
10.0. Introduction10.1. Sample of an Agreement (Musharakah Agreement in Sukuk Issuance)10.2. Sample of an Offer Letter10.3. Sample of Legal Document Structure10.4. Master Agency Agreement (AIBIM)10.5. Corporate Wakalah Placement Agreement (AIBIM)10.6. Corporate Murabahah Master Agreement10.7. List of the Top Common Audit Shortcomings in Sharī`ah Non-Compliance