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Shariah Non-compliance Risk

Total questions: 7

Worksheet time: 4mins

Name
Class
Date
1.

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

a)

Trust Receipt-i

b)

Bank Guarantee

c)

Invoice Financing-i

d)

Local Bill Purchase-i

2.

Which of the following is inherent SNC risk for Tawarruq?

a)

Incomplete info in Murabahah Contract Note

b)

The sequence of e-cert is inaccurate

c)

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

d)

None of the above

3.

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".

a)

True

b)

False

4.

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

a)

Islamic Product and Business Development

b)

Shariah Risk

c)

Shariah Advisory

d)

Product Owner

e)

Operational Risk Management

5.

Shariah Risk as second line of defence is responsible to :

a)

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

b)

Implement Shariah risk related policies, guidelines and procedures

c)

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

d)

None of the above

6.

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

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

a)

Sales and marketing

b)

Legal Documentation

c)

Product Development

d)

All of the above

7.

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.

a)

Murabahah

b)

Bai' Al-Sarf

c)

Bi' Ad Dayn

d)

Ijarah