Shariah Non-compliance Risk

Which of the following product use Murabahah as underlying Shariah Contract?

• Trust Receipt-i

• Bank Guarantee

• Invoice Financing-i

• Local Bill Purchase-i

Which of the following is inherent SNC risk for Tawarruq?

• Incomplete info in Murabahah Contract Note

• The sequence of e-cert is inaccurate

• The agent retains any portion of the gains without the concent of the principal

• None of the above

BU has submitted wrong financing amount for Commodity Murabahah Trading which has led to under-traded for Commodity Murabahah Amount. The identified causal factor for above scenario is "system".

• True

• False

From whom should advice and consultation be sought when highlighting any possible Shariah issue?

• Islamic Product and Business Development

• Shariah Risk

• Shariah Advisory

• Product Owner

• Operational Risk Management

Shariah Risk as second line of defence is responsible to :

• Identify and manage Shariah Non-Compliance risks as well as for the result of taking those risks

• Implement Shariah risk related policies, guidelines and procedures

• Independently assess on the compliance and effectiveness of Shariah Risk management, control and governance processes

• None of the above

"Inadequate and ineffective communication on the processes and procedures to the relevant stakeholders."

This inherent Shariah Non-Compliance risk can be identified in :

• Sales and marketing

• Legal Documentation

• Product Development

• All of the above

Following inherent Shariah Non-Compliance (SNC) risks are the key inherent SNC risk for :

• Involvement of Riba' (Interest was charged/received in the exchange)

• Transaction completed not accordance to the spot basis (e.g T+2)

• Exchanged of same type of currency denomination not equal.

• Murabahah

• Bai' Al-Sarf

• Bi' Ad Dayn

• Ijarah