leveraging shariah compliance and technology
TRANSCRIPT
Leveraging Technology in Shariah Compliance Mujtaba Khalid
The Increasing Cost of Compliance
2017 2022
4% of Revenue
10% of Revenue
$80 billion
$120 billion
*
*
*Global Regulatory Outlook Report 2017Thomson Reuters Regulations Report 2017
The Cost of non-Compliance
Thomson Reuters
Adoption of new technologies to facilitate the delivery of regulatory requirements
Trends in RegTech
RegTech Investments 2012 – 2016 (USD) Global RegTech Investments Q1 2016 – Q1 2017 (USD)
RegTech Investments by Sub-sector 2014 – Q1 2017 (USD)
The Islamic Finance Industry
Islamic Finance Transactions
Shariah Compliant
Transaction
Shariah Principles
Regulatory Requirements
Standards
Shariah Non-Compliance Vs Net Income
BANK CUSTOMER
PROJECT
MUSHARAKAH
IJARAH
Capital Contribution
Capital Contribution
Initial Equity Ratio80:20
Bank’s Portion
Stage 1
BANK CUSTOMER
PROJECT
MUSHARAKAH
IJARAH
Middle Stages
Capital Contribution
Capital Contribution
Equity Ratio40:60
Bank’s Portion
BANK CUSTOMER
PROJECT
MUSHARAKAH
IJARAH
Close of Contract
Capital Contribution
Capital Contribution
Equity Ratio0:100
SALE
Leveraging Smart Contracts
