Islamic Banking Governance Training Course

Participants can map core Islamic banking functions and their operational accountabilities.

• Front office, operations, risk and compliance accountabilities mapped
• Islamic windows, subsidiaries and fully fledged bank operating models
• Product lifecycle from concept approval through closure and review
• Three lines model applied to Shari'ah compliance responsibilities
• Segregation of duties within Islamic transaction execution and settlement
• Management information flows supporting timely Shari'ah governance decisions

Participants can identify suitable Shari'ah contracts and their essential contractual conditions.

• Murabahah sale conditions, cost disclosure and agreed profit margin
• Ijarah ownership, usufruct, maintenance and lease-payment obligations
• Mudarabah capital, profit ratios and loss allocation principles
• Musharakah partnership contributions, management rights and loss-sharing rules
• Wakalah agency authority, fees and delegated investment decisions
• Qard Hasan, kafalah and rahn supporting Islamic banking arrangements

Participants can assess deposit and investment account structures, profit allocation and disclosure controls.

• Current accounts structured through Qard and repayment obligations
• Unrestricted investment accounts governed through Mudarabah arrangements
• Restricted investment accounts, mandates and asset-allocation constraints
• Profit equalisation reserve and investment risk reserve treatment
• Profit distribution calculations, weightages and disclosure control points
• Displaced commercial risk identified through benchmark and return pressures

Participants can assess control requirements for common Islamic trade and asset-financing products.

• Murabahah purchase orders, agency appointments and title-transfer evidence
• Tawarruq transaction sequence, commodity ownership and settlement controls
• Salam specifications, advance payment and delivery-risk management
• Istisna contracts for construction, manufacturing and staged delivery
• Ijarah asset registers, insurance responsibilities and residual-value controls
• Document exceptions escalated before customer financing proceeds are released

Participants can analyse governance considerations in Islamic corporate financing and Sukuk structures.

• Diminishing Musharakah ownership transfers and periodic rental calculations
• Project Mudarabah governance, reporting covenants and performance monitoring
• Islamic syndicated financing roles, documentation and participant rights
• Sukuk asset ownership, beneficial interests and cash-flow structures
• Trustee duties, originator obligations and investor disclosure requirements
• Default, restructuring and enforcement decisions under Shari'ah constraints

Participants can design governance arrangements for effective independent Shari'ah oversight.

• Board responsibility for Shari'ah governance and institutional accountability
• Shari'ah committee composition, independence, competence and appointment criteria
• Terms of reference defining approvals, advice and escalation authority
• Management Shari'ah compliance function roles and reporting lines
• Fit-and-proper assessments, conflicts declarations and member remuneration controls
• AAOIFI governance standards applied to committee processes and documentation

Participants can establish a controlled product approval process for Islamic banking offerings.

• Product concept papers documenting commercial purpose and target customers
• Shari'ah pronouncement requests supported by transaction-flow diagrams
• Legal documentation reviewed against approved contractual structures
• Pre-launch control checklists covering systems, operations and customer disclosures
• Change-control gates for pricing, process, documentation and supplier amendments
• Post-launch reviews testing approved structures against actual transaction execution

Participants can identify, assess and treat Shari'ah non-compliance risks across banking processes.

• Shari'ah non-compliance risk taxonomy linked to products and processes
• Risk and control self-assessment scored using likelihood and impact
• Inherent risk, residual risk and control-effectiveness rating methods
• Root-cause analysis applied to documentation, system and conduct failures
• Key risk indicators signalling transaction exceptions and overdue remediation
• Risk appetite statements defining tolerance for Shari'ah compliance breaches

Participants can plan and conduct evidence-based internal Shari'ah review activities.

• Annual Shari'ah review plans prioritised through risk-based coverage
• Review objectives, scope, sampling and evidence requirements documented
• Transaction testing against approved contracts and operating procedures
• Walkthroughs trace customer requests through booking, settlement and monitoring
• Findings classified by severity, root cause and remediation ownership
• Shari'ah review reports prepared for management and committee consideration

Participants can develop internal audit procedures for Islamic banking governance and controls.

• Audit universe includes governance, products, operations and Shari'ah controls
• COSO control components applied to Islamic banking process assessments
• Audit programs test design effectiveness and operating effectiveness separately
• Sampling methods selected for high-risk Murabahah and Ijarah populations
• Working papers link observations to criteria, evidence and conclusions
• Issue validation confirms corrective actions before audit closure approval

Participants can interpret key accounting and reporting issues arising from Islamic banking activities.

• AAOIFI financial accounting standards compared with applicable IFRS requirements
• Murabahah deferred profit recognition and receivable measurement principles
• Ijarah asset accounting, depreciation and rental-income recognition
• Mudarabah investment accounts, profit allocation and fiduciary disclosures
• Shari'ah non-compliant income identified, calculated and purified appropriately
• Financial statement notes explain restricted accounts and related-party transactions

Participants can assess prudential requirements affecting Islamic banking products and governance.

• Basel capital framework applied to Islamic financing exposures
• IFSB capital adequacy guidance for credit and market risk
• Risk-weighted assets calculated for Murabahah, Ijarah and Musharakah exposures
• Operational risk events linked to Shari'ah failures and process breakdowns
• Supervisory review expectations for governance, risk appetite and capital planning
• Stress scenarios test portfolio deterioration, withdrawals and liquidity pressures

Participants can evaluate Shari'ah-compliant liquidity and treasury management controls.

• Liquidity risk sources in current accounts and investment accounts
• Commodity Murabahah placements structured with ownership and settlement evidence
• Wakalah investment arrangements governed through mandates and counterparty limits
• Sukuk portfolios managed for liquidity buffers and market-risk exposure
• Liquidity coverage ratio considerations for Shari'ah-compliant high-quality assets
• Treasury dealing limits, confirmations and independent valuation controls

Participants can integrate Islamic contract features into core banking risk-management processes.

• Credit appraisal considers obligor strength, asset quality and contract risks
• Collateral enforceability assessed under rahn and guarantee arrangements
• Market risk measured for Sukuk prices, foreign exchange and commodities
• Equity investment risk monitored within Musharakah and Mudarabah exposures
• Operational loss events captured through incident management and loss databases
• Scenario analysis estimates losses from failed contracts and documentation defects

Participants can apply financial-crime and conduct controls to Islamic banking customer journeys.

• Customer due diligence performed before account opening and financing approval
• Sanctions screening controls applied to customers, suppliers and beneficiaries
• Transaction monitoring scenarios identify trade-based money laundering indicators
• Fair-treatment principles applied to profit rates, fees and customer communications
• Product disclosures explain ownership transfers, obligations and early-settlement treatment
• Complaints analysis identifies recurring conduct failures and remediation priorities

Participants can specify governance controls for digital Islamic banking and outsourced activities.

• Core banking parameters enforce approved profit calculations and transaction sequencing
• System access controls restrict unauthorised contract amendments and overrides
• Data lineage traces Shari'ah reports to source transactions and approvals
• Fintech partnerships assessed for contract execution and customer-disclosure risks
• Outsourcing agreements define Shari'ah compliance obligations and audit rights
• Business continuity plans protect payment, financing and customer-service operations

Participants can prepare decision-useful Shari'ah governance reports and regulatory responses.

• Board dashboards report breaches, review results, trends and remediation status
• Shari'ah committee papers distinguish decisions, recommendations and matters noted
• Management action plans assign owners, deadlines and validation evidence
• Regulatory returns reconcile prudential data with Islamic product classifications
• Material Shari'ah breaches escalated through documented incident-reporting procedures
• Annual Shari'ah reports communicate governance arrangements and assurance conclusions

Participants can build, review and present a complete Islamic banking governance and control pack for a selected product or business unit.

• Governance map assigns board, committee, management and assurance accountabilities
• Product control matrix links contract conditions to preventive controls
• Shari'ah risk register prioritises exposures, indicators and treatment actions
• Internal review plan defines scope, samples, evidence and reporting routes
• Board dashboard summarises breaches, remediation progress and emerging risks
• Present governance pack and defend recommendations before simulated decision-makers