ISLAMIC FINANCIAL LEGAL FRAMEWORK

Mahyuddin Khalid

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INTRODUCTION TO ISB658

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COURSE BACKGROUND

Course code : ISB658

Course name : ISLAMIC FINANCIAL LEGAL FRAMEWORK

Level : Degree

Credit hour : 4

Contact hour : 4

Part : 5

Status : CORE

Prerequest :

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OBJECTIVE

Upon completion of this subject, the student should be able to :- Explain the legal framework concerning

Islamic banking and finance. (LO1,6) Describe the modus operandi and various

Islamic financial products in relation to the current legal practice. (LO6)

Apply the principles of law to to different scenarios of Islamic banking issues. (LO7)

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COURSE DESCRIPTION

This course provides an understanding of the legal framework of Islamic banking and finance.

Topics covered include the laws and regulations which govern Islamic banking business, Takaful business as well as Islamic capital market.

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COURSE CONTENT

Framework of the Malaysian Financial System Legal Framework of the Malaysian Islamic

Financial System Legal Framework of Islamic Banking Legal Framework of Takaful Legal Framework of Islamic Capital Market Legal Documentation for Islamic Banking and

Finance Court’s Jurisdiction over Islamic Banking and

Finance Cases Legal Aspects of e-Islamic Banking

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SCHEME OF WORK

COURSE CONTENT TOPIC METHOD WEEKS

Framework of the Malaysian Financial System

Legal Framework of the Malaysian Islamic Financial System

Legal Framework of Islamic Banking

Legal Framework of Takaful

Legal Framework of Islamic Capital Market

Legal Documentation for Islamic Banking and Finance

Court’s Jurisdiction over Islamic Banking and Finance Cases

Legal Aspects of e-Islamic Banking

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ASSESSMENT

Continuous Assessment50% Quiz : 5% Test : 15% Group Assignment : 10% Individual Task : 10% Presentation : 10%

Final Examination 50%

TOTAL 100%

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REFERENCES

Main Reference Muhamad Rahimi Osman. (2009) Islamic Financial Legal

Framework, UPENA, Shah Alam Additional References

Nik Norzrul Thani, Legal Aspects of the Malaysian Financial System, Sweet & Maxwell Asia, Petaling Jaya, 2001.

Nik Norzrul Thani et. al., Law and Practice of Islamic Banking and Finance, Sweet & Maxwell Asia, Petaling Jaya, 2003.

Mohd Daud Bakar, “Development of a Supportive and Effective Legal Framework for the Islamic Financial Services Industry” paper presented at the International Seminar on Challenges Facing the Islamic Financial Services Industry, Bali, Jakarta, 1-2 April 2004.

Mohd Daud Bakar, “ The Shari’a Supervisory Board and Issues of Shari’a Rulings and Their Harmonisation in Islamic Banking and Finance”, in Islamic Finance: Innovation and Growth, Euromoney Books/AAOIFI, pp. 74 – 89.

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REFERENCES

Engku Rabiah Adawiah, “Islamic Law Compliance Issues in Sale-Based Financing Structures As Practiced in Malaysia” [2003] 3 MLJ p. lviii.

Mohamed Ismail Mohamed Shariff, “Salient Features of Islamic banking Act 1983 & Banking and Financial Institutions Act 1989”, paper presented at Seminar on Shariah and Legal Aspects of Islamic Banking Practice, 29-30 May 1996.

Ahmad Ibrahim, “Legal Framework of Islamic Banking”, Jurnal Undang-undang IKIM, vol. 1, No. 1, July-Dec. 1997, pp. 1-29.

Halsbury’s Laws of Malaysia, Vol. 14, Malayan Law Journal Sdn Bhd, 2002, pp. 248-311.

Mohd Ma’sum Billah, Principles & Practices of Takaful and Insurance Compared, IIUM Press, Kuala Lumpur, 2001.

Resolutions of the Securities Commission Syariah Advisory Council, Securities Commission, Kuala Lumpur, 2002

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REFERENCES

Statutes: Federal Constitution Islamic Banking Act 1983 Banking and Financial Institution Act 1989 Central of Banking Act 2009 Takaful Act 1984 Securities Commission Act 1993 Offshore Banking Act 1990

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REFERENCES

Cases: Bank Islam Malaysia Bhd. v. Lim Kok Hoe & Anor. and Other

Appeals [2009] CLJ JT (4) Arab-Malaysian Finance Bhd. v. Taman Ihsan Jaya Sdn. Bhd.

& Ors [2008] 5 MLJ 631 Malayan Banking Bhd. v. Ya’kup Oje & Anor. [2007] 5 CLJ

311 Affin Bank Bhd v. Zulkifli Abdullah [2006] 1 CLJ 438 HC Bank Kerjasama Rakyat Malaysia Bhd v. Emcee Corparation

Sdn Bhd [2003] 1 CLJ 625 (CA) Dato Nik Mahmud Bin Daud v. Bank Islam Malaysia Berhad

[1996] 4 MLJ 295 ; [1996] 1 CLJ 576. Bank Islam Malaysia Berhad v. Adnan Bin Omar [1994] 3

CLJ 735 ; [1994] 3 AMR 44. Bank Islam Malaysia Berhad v. Tinta Press Sdn. Bhd [1986]

MLJ 256 ; [1987] 1 CLJ 474.

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FORMAT OF ASSIGNMENT

Font: Use Times New Roman Size: 12

Spacing: Double

10-15 pages Primary references:

THREE books or FIVE articles from journal

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REFERENCING

Use the APA (American Psychological Association) referencing system.

References in the text should include author’s name, publication year and page number if available.

Examples of citations in text : One author (Bean, 1992, p. 33); two authors (Graham &

Krugman, 1989); more than two authors (Bernanke et al., 1999) or

Bean (1992, p. 33), Graham and Krugman (1989), and Bernanke et al. (1999).

In the case of more than two authors, the first citation includes all the last names of the co-authors. The above examples only apply for subsequent citations.

References must be listed in alphabetical order of first author at the end of the paper.

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REFERENCING - EXAMPLE

Article in Journal: Dornbusch, R. (1976), Exchange Rate

Expectations and Monetary Policy, Journal of International Economics, 6, 231-44.

Chapter in Book: Dornbusch, R. (1977), The Theory of

Flexible Exchange Rate Regimes and Macroeconomic Policy, In J. Herin, A. Lindbeck & J. Myhrman (Eds.),

Flexible Exchange Rates and Stabilization Policy (pp. 123-43), Boulder, CO: Westview Press.

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REFERENCING - EXAMPLE

Books: Helpman E., & Krugman, P. (1985). Market Structure and Foreign

Trade. Cambridge: MIT Press. Mishkin, F.S. (2004). The Economics of Money, Banking and Financial

Markets (7th ed.). Boston: Addison Wesley Electronic Sources:

Electronic reference formats recommended by the American Psychological Association. (2000, October 12). Retrieved October 23, 2000, from http://www.apa.org/journals/webref.html

Eid, M. & Langeheine, R. (1999). The measurement of consistency and occasion specificity with latent class models: A new model and its application to the measurement of affect.

Psychological Methods, 4, 100-116. Retrieved November 19, 2000, from the PsycARTICLES database

*If information is retrieved from an aggregated database, and the name of the database is provided and sufficient, no address is needed (as in the second example for electronic sources)*

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TABULATION OF MARKS

Introduction = 1% Facts = 3% Explanation = 3% Conclusion = 1% Reference = 2% Total = 10%

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FORMAT OF PRESENTATION

Format: Power point presentation

Time of presentation: 30 minutes

Q & A session: 20 minutes

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TABULATION OF MARKS

Explanation of facts = 4% Q & A = 4% Creativity = 1% Time management = 1% Total = 10%

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