On course for success



Ensuring Shari’ah compliant aspect is imperative for Islamic financial institutions (IFIs) to maintain the confidence level of stakeholders and public at large. Inadequate attention to the whole process of Shariah compliant aspect will trigger negative repercussion to IFIs, such as massive withdrawal and financial loss. Any income derived from Shariah non-compliant incidents cannot be recognized as IFI profit. Hence, understanding Shariah non-compliant risk management is essential to ensure Shariah compliant aspect in place. The 2 days course is de- signed to provide the participants with a comprehensive and practical understanding on man- aging Shariah non-compliant risk in IFIs.


After completing this session, participants should be able to:

  • Understand the significance of Shari’ah compliance and Shari’ah governance in IFIs
  • Understand the key Shari’ah non-compliant risk areas in IFIs
  • Understand the process of Shari’ah non-compliant event reporting
  • Apply the rectification plan for Shari’ah non-compliant events
  • Manage the income resulting from Shari’ah non-compliant events
  • Mitigate the occurrence of Shari’ah non-compliant risk events

Course Outline

  • Shari’ah Principles and Philosophy in Islamic Finance
  • General Framework for Risk Management in Islamic Finance
  • Framework of Managing Shari’ah Non-Compliance Risk
  • Key Risk Area in Islamic Banks
  • Retail Consumer Financing
  • Corporate/Business Banking
  • Deposit and Investment
  • Managing Shari’ah Non-Compliant Risk
  • Reporting Shari’ah Non-Compliant Events
  • Dealing with Shari’ah Non-Complaint Events
  • Income Purification Mechanism for Shari’ah Non-Compliant Events
  • Issues in Shari’ah Non-Compliant Risk Management

Target Participants

  • Board of Participants
  • Managers and Officers of IFIs
  • Shari’ah Department
  • Shari’ah Review and Compliant Department
  • Risk Department
  • Auditors
  • Takaful and Retakaful Operators
  • Advocates and Solicitors
  • Lecturers and Students

Trainer’s Profile


Dr Mohammad Mahbubi Ali is a research fellow at the International Institute of Advanced Islamic Studies (IAIS) Malaysia. He also serves as a Shariah committee member of Affin Islamic Bank, Shariah consultant for ZICO Shariah Advisory Bhd and Roosdiono & Partners. Previously, he was a researcher at the International Shari’ah Research Academy for Islamic Finance (ISRA). During his stint at ISRA, he had contributed to numerous ISRA’s research publications, mainly involving in Central Bank of Malaysia’s Shari’ah Standards. He was a lecturer at the University of Kuala Lumpur and Unitar International University. In his young age, he has managed to contribute extensively to Islamic finance through his regular writings featured in the Islamic Finance News (IFN), Business Islamica, The General Council for Islamic Banks and Financial Institutions (CIBAFI), Epicentre and many others.

He has published numerous articles in international and local referred academic journals, written several book chapters and presented a number of papers in various international conferences. His paper entitled: “A Framework of Income Purification for Islamic Financial Institutions,” co-authored with Dato’ Dr. Asyraf Wajdi Dusuki and Lokmanulhakim Hussain, was conferred best paper presentation in Sharia Economics Conference, University of Hannover, Germany, 2013. He received a bachelor degree in Shari’ah Business and Financial Management from Islamic Business School, Tazkia Indonesia, Chartered Islamic Finance Professional (CIFP) from INCEIF, The Global University in Islamic Finance, Malaysia and PhD in Islamic Banking and Finance from the IIUM Institute of Islamic Banking and Finance, Malaysia.

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