Sharia-Compliant Banking Training Course

Duration 10 days 20 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends Central bank supervisors, Islamic bank managers and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 16 Nov 2026 Course code SD-BI-137

Before you join: Participants should understand mainstream bank balance sheets, credit products, deposits, liquidity, capital and basic regulatory concepts.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Islamic banks and central-bank supervisory teams must assess whether products, governance arrangements and financial reporting meet Sharia requirements while also satisfying prudential, conduct and financial-crime controls. The difficult work lies in translating contractual principles into operating procedures: proving asset ownership in murabaha, maintaining Sharia board independence, calculating profit distributions, managing liquidity without interest-bearing instruments, and identifying breaches before they become regulatory or reputational events.

This intermediate course examines the legal, commercial, governance and supervisory foundations of Sharia-compliant banking. Participants work through the principal financing, deposit, treasury and capital-market structures, including murabaha, ijara, musharakah, mudarabah, wakalah, salam, istisna and sukuk. The course also addresses AAOIFI standards, IFSB prudential guidance, Basel-aligned supervision, Sharia governance, risk management, financial reporting, AML controls, consumer protection and crisis preparedness. Participants learn to assess transaction structures, identify Sharia non-compliance risk, review governance evidence and develop supervisory or implementation responses.

Teaching combines concise technical briefings with bank cases, supervisory-file reviews, contract analysis, group decision-making and scenario simulations. Participants progressively build a Sharia-compliant banking review pack, starting with a product and governance assessment in the first week and extending it through risk, reporting, liquidity and supervisory considerations in the second. They leave with reusable review templates, a Sharia governance framework, a product approval checklist and a completed bank assessment or supervisory action plan.

The course suits central-bank staff, Islamic-bank managers, risk and compliance professionals, auditors, finance teams and policy officials who already understand mainstream banking and need structured capability in Islamic banking principles and controls.

What you will be able to do

  • Assess Islamic banking transactions against Sharia principles, contractual requirements and AAOIFI guidance
  • Structure murabaha, ijara, partnership and agency arrangements with documented ownership and risk transfer
  • Design Sharia governance arrangements covering board oversight, independent review and breach escalation
  • Apply IFSB and Basel-aligned prudential principles to Islamic bank capital, liquidity and risk assessments
  • Calculate profit distribution and identify displaced commercial risk within investment account structures
  • Prepare a Sharia-compliant product approval pack with controls, disclosures and operational evidence
  • Conduct a supervisory or internal review of Sharia compliance, financial reporting and risk management
  • Present a complete Islamic banking assessment and remedial action plan to senior stakeholders

Benefits of attending

For you

  • Assess Islamic banking structures with clearer contractual and Sharia reasoning
  • Prepare credible product approval and Sharia governance documentation
  • Review Islamic bank risks using recognised prudential and accounting references
  • Contribute effectively to central-bank inspections and licensing assessments
  • Build a work-ready portfolio of Islamic banking review tools

For your organisation

  • Improve consistency of Sharia governance decisions and escalation procedures
  • Reduce product-control failures causing Sharia breaches or customer disputes
  • Strengthen supervisory reviews of Islamic bank capital, liquidity and governance
  • Improve evidence quality for internal audit, regulators and Sharia boards
  • Support safer introduction of Islamic banking products and funding structures

Course modules

20 modules over 10 days

Participants can assess core Islamic commercial principles and their implications for banking transactions.

  • Origins, objectives and legal sources of Islamic commercial jurisprudence
  • Riba, gharar and maysir tests applied to banking transactions
  • Asset linkage, ownership and risk transfer within valid contracts
  • Fungibility distinctions affecting money, debt, commodities and currencies
  • Substance-over-form analysis for proposed Islamic banking product structures
  • Four Sunni schools and contemporary standard-setting bodies

Participants can map Sharia governance responsibilities, approval authorities and assurance mechanisms.

  • Board, Sharia Supervisory Board and management accountability boundaries
  • AAOIFI Governance Standards for Sharia supervision and internal review
  • Independence, competence and appointment criteria for Sharia board members
  • Sharia compliance function mandates, reporting lines and escalation protocols
  • Annual Sharia report content, evidence and disclosure responsibilities
  • Fatwa approval workflow from product proposal to board resolution

Participants can build a controlled product governance model for an Islamic banking operation.

  • Product governance gates from concept paper through post-launch review
  • Contract documentation, systems configuration and operational control dependencies
  • Three-lines model applied to Sharia compliance accountabilities
  • Sharia non-compliance event registers, root-cause analysis and remediation
  • Product approval packs containing legal, risk and Sharia evidence
  • Control matrices linking contractual obligations to operational activities

Participants can review murabaha and tawarruq structures for valid ownership, pricing and documentation.

  • Murabaha sequence: customer promise, bank purchase, possession and resale
  • Cost-plus-profit disclosures and fixed deferred-payment schedule construction
  • Agency appointments and controls preventing premature customer ownership
  • Commodity tawarruq structures, market execution and documentation risks
  • Late-payment clauses, charitable penalties and recovery cost treatment
  • Trade finance murabaha for imports, inventory and working capital

Participants can structure asset-based lease and home-finance arrangements with appropriate risk allocation.

  • Ijara asset acquisition, title ownership and lease commencement conditions
  • Rental calculation, benchmark use and periodic rent-reset clauses
  • Maintenance, takaful and ownership-risk allocation during lease periods
  • Diminishing musharakah ownership schedules and unit-purchase mechanics
  • Early termination, default and asset-disposal treatment under ijara
  • Lease documentation controls for property, equipment and vehicle finance

Participants can distinguish equity, agency and forward-sale structures for suitable financing needs.

  • Mudarabah profit-sharing ratios, loss allocation and manager responsibilities
  • Musharakah capital contributions, governance rights and exit arrangements
  • Wakalah investment mandates, agency fees and performance incentives
  • Salam contracts for agricultural financing and commodity delivery
  • Istisna structures for construction, manufacturing and milestone payments
  • Contract-selection criteria based on assets, cash flows and risk appetite

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

  • Qard current accounts, repayment obligations and service-fee boundaries
  • Mudarabah investment accounts and unrestricted investment mandates
  • Restricted investment accounts, investor instructions and asset segregation
  • Profit equalisation reserves and investment risk reserve governance
  • Profit distribution calculations using weighted average investment balances
  • Displaced commercial risk indicators and account-holder communication

Participants can assess Sharia-compliant liquidity instruments and treasury risk controls.

  • Sukuk asset, usufruct and service-based structures compared
  • Tradability rules for debt, tangible assets and mixed pools
  • Commodity murabaha placements and interbank liquidity arrangements
  • Central-bank Islamic liquidity facilities and eligible collateral criteria
  • Liquidity coverage ratio treatment for high-quality Sharia-compliant assets
  • Treasury limits, counterparty exposures and settlement-risk controls

Participants can identify, measure and report the distinctive risks arising from Islamic banking activities.

  • IFSB risk categories: credit, market, liquidity, operational and Sharia
  • Equity investment risk within musharakah and mudarabah exposures
  • Rate-of-return risk from benchmark movements and repricing gaps
  • Commodity price risk during murabaha ownership and settlement periods
  • Sharia non-compliance risk measurement, loss estimation and reporting
  • Risk appetite statements linking limits to Islamic banking strategy

Participants can evaluate Islamic bank capital adequacy using IFSB and Basel-aligned approaches.

  • IFSB capital adequacy principles and supervisory review expectations
  • Risk-weighted assets for murabaha, ijara and investment exposures
  • Alpha factor treatment for unrestricted investment account risk
  • Common Equity Tier 1 eligibility and loss-absorption features
  • Internal capital adequacy assessment process for Islamic banks
  • Capital buffers, concentration limits and supervisory intervention thresholds

Participants can identify major reporting issues under AAOIFI Financial Accounting Standards and relevant IFRS requirements.

  • AAOIFI Financial Accounting Standards and IFRS reporting relationships
  • Murabaha profit recognition and deferred-payment receivable measurement
  • Ijara asset depreciation, rental income and impairment considerations
  • Investment account presentation, disclosures and fiduciary responsibilities
  • Sukuk classification, periodic distributions and redemption accounting
  • Sharia non-compliant income identification, purification and disclosure

Participants can adapt conventional credit assessment methods to Islamic financing contracts.

  • Borrower cash-flow analysis for asset-backed Islamic financing proposals
  • Murabaha collateral, guarantees and documentation enforceability assessment
  • Ijara residual-value assumptions and asset-condition monitoring controls
  • Musharakah monitoring through covenants, reporting rights and governance
  • Expected credit loss considerations for Islamic financing receivables
  • Problem-financing restructuring without prohibited interest capitalisation

Participants can plan and conduct evidence-based Sharia compliance reviews and internal audits.

  • Annual Sharia review plans based on product and process risk
  • Transaction sampling methods for testing ownership and documentation evidence
  • Audit trails from customer instruction through settlement and accounting
  • Control testing for agency, commodity purchase and asset transfer
  • Breach classification, materiality assessment and corrective action tracking
  • Reporting findings to management, Sharia boards and regulators

Participants can incorporate customer protection and financial-crime controls into Islamic banking processes.

  • Product disclosures explaining profit rates, ownership and customer obligations
  • Fair-treatment controls for vulnerable customers and collections activities
  • Complaint handling for Sharia concerns, pricing disputes and service failures
  • Customer due diligence integrated with Islamic account-opening procedures
  • Sanctions screening for trade finance and commodity transactions
  • Source-of-funds reviews for investment accounts and charitable payments

Participants can prepare and assess Islamic bank licensing submissions and supervisory review evidence.

  • Licensing criteria for Islamic banks, windows and foreign branches
  • Fit-and-proper assessments for directors and Sharia board members
  • Basel Core Principles applied to Islamic banking supervisory processes
  • Off-site monitoring indicators for capital, liquidity and asset quality
  • On-site examination planning for Sharia governance and product controls
  • Supervisory letters, remediation deadlines and follow-up evidence requirements

Participants can incorporate Islamic banking characteristics into stress, recovery and resolution planning.

  • Macroeconomic stress scenarios for Islamic financing portfolios and deposits
  • Liquidity stress assumptions for investment accounts and sukuk markets
  • Reverse stress testing for Sharia breaches and confidence shocks
  • Recovery options using asset sales, capital actions and funding measures
  • Resolution considerations for investment account holders and asset ownership
  • Crisis communications with regulators, customers and Sharia boards

Participants can identify governance, conduct and operational issues at the banking-takaful interface.

  • Takaful risk-sharing model compared with conventional insurance transfer
  • Bancatakaful distribution agreements, commissions and customer disclosures
  • Credit-life takaful linked to Islamic retail financing products
  • Claims administration, customer consent and data-sharing controls
  • Sharia governance coordination between bank and takaful operator
  • Operational resilience for outsourced takaful sales and servicing

Participants can assess digital and cross-border delivery risks for Islamic banking products.

  • Digital contract acceptance, electronic signatures and evidence retention
  • Automated murabaha workflows and controls over asset purchase sequence
  • Fintech partnerships, outsourcing due diligence and Sharia accountability
  • Cross-border sukuk investment restrictions and settlement arrangements
  • Correspondent banking relationships, sanctions controls and payment screening
  • Data governance for customer profiling and automated decision models

Participants can create an implementation plan and management reporting pack for priority improvements.

  • Gap assessment against Sharia governance, prudential and reporting requirements
  • Prioritisation matrix using risk severity, regulatory urgency and delivery effort
  • Target operating model for Sharia compliance responsibilities and controls
  • Key risk indicators for breaches, profit distribution and liquidity
  • Board dashboard design for Sharia, conduct and prudential information
  • Implementation roadmaps with owners, milestones, dependencies and assurance

Participants can build, review and present a complete Islamic bank assessment and prioritised remedial action plan.

  • Define review scope covering products, governance, risks and reporting
  • Assess transaction evidence against contractual and Sharia requirements
  • Evaluate capital, liquidity, conduct and financial-crime control findings
  • Prioritise remediation using materiality, urgency, ownership and feasibility
  • Draft board-level findings, recommendations and implementation milestones
  • Present the completed assessment for challenge and decision-making

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Sharia governance framework template
  2. Islamic product approval checklist
  3. Murabaha and ijara transaction review matrix
  4. Islamic bank prudential assessment model
  5. Sharia compliance audit programme
  6. Islamic bank remedial action plan

Who should attend

  • Central bank supervisors — assess Islamic banks, license applicants and Sharia governance arrangements
  • Islamic bank managers — translate Sharia requirements into controlled products and operating procedures
  • Risk and compliance managers — identify Sharia non-compliance, conduct and prudential exposures
  • Internal auditors — test Sharia governance evidence, transaction controls and remediation actions
  • Finance and reporting professionals — apply AAOIFI and relevant IFRS reporting considerations
  • Treasury and product specialists — structure funding, liquidity and financing arrangements without interest

Skills and tools covered

Sharia governanceIslamic product structuringPrudential supervisionLiquidity risk managementAAOIFI reportingSharia compliance review

Tools and standards

AAOIFI Shari'ah Standards, AAOIFI Financial Accounting Standards, IFSB Capital Adequacy Standard, Basel Core Principles for Effective Banking Supervision

How the course runs

Training methodology

The course uses short technical briefings followed by structured bank cases, contract reviews, group exercises and supervisory simulations. Participants compare product structures against Sharia principles and AAOIFI requirements, review governance papers, analyse liquidity and capital data, and test responses to breach scenarios. Trainers use examples from retail banking, trade finance, corporate financing, sukuk and central-bank supervision. Application planning is built throughout the course, allowing each participant to adapt the templates and review methods to their institution.

Requirements and prerequisites

Participants should understand mainstream bank balance sheets, credit products, deposits, liquidity, capital and basic regulatory concepts. Prior work in banking supervision, risk, compliance, audit, finance, treasury, product management or legal advisory is useful. Familiarity with Islamic banking terminology is helpful but not assumed; the course establishes the necessary contractual and Sharia concepts before applying them. Participants do not need Arabic language skills, religious studies qualifications, prior AAOIFI certification, or experience serving on a Sharia supervisory board.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants should already understand mainstream banking products, financial statements and basic bank risk concepts. No prior Islamic banking qualification, Arabic language ability or religious studies background is required.

Bring a laptop if attending in person and, where permitted, examples of product papers, policy issues or supervisory questions from your institution. Trainers can help participants apply the course templates to these materials without disclosing confidential information.

It is designed for central-bank staff, Islamic-bank managers, risk and compliance teams, auditors, finance professionals, treasury specialists and policy officials. It is particularly useful for people reviewing, regulating or implementing Islamic banking operations.

This course concentrates on bank products, operating controls, governance, prudential supervision, financial reporting and risk management. It gives less attention to broader capital-market theory or personal religious finance than a general Islamic finance programme.

Participants use product review matrices, governance maps, risk indicators and action-plan templates that can be adapted for their bank or supervisory authority. The capstone consolidates these materials into a practical assessment and remediation pack.

Each training day runs from 08:30 to 16:30 and provides about 6.5 contact hours. The first week establishes contracts, governance and core banking structures; the second week focuses on prudential controls, supervision, implementation planning and the capstone.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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