Shariah Audit & Shariah Non-Compliance Reporting for Islamic Financial Institutions | Red Money Events | 19 July 2017 | InterContinental Hotel, 165, Jalan Ampang, Kuala Lumpur, 50450 Kuala Lumpur, Federal Territory of Kuala Lumpur, Malaysia

Shariah audit has long been an issue of significant importance for Islamic financial institutions in Malaysia. However, with the recent revision and expansion of Shariah governance requirements, the scope, nature, responsibility and accountability of Shariah audit (and compliance) has changed substantially. Closely associated to this is the important principle of Shariah non-compliance: by offering Islamic banking and finance products, Shariah non-compliance is a fundamental, inherent and key risk for Islamic financial institutions of all kinds. The concept of non-compliance, and the onus it creates has recently become more significant by being explicitly tied to important Islamic banking legislation, such as Islamic Financial Services Act 2013. Indeed, Section 28 (3) of IFSA 2013 sets out clearly the obligations and responsibilities of a financial institution in the case Shariah non-compliance, and the subsequent reporting and disclosure process. Penalties and consequences of not following Shariah non-compliance reporting procedures can be severe.

Associate Professor Dr Rusni Hassan —
Deputy Dean
IIUM Institute of Banking & Finance and former member, Shariah Advisory Council, Bank Negara Malaysia

Associate Prof Dr. Zurina Shafii —
Member,
Shariah Advisory Committee, MBSB