Tawarruq & Beyond Tawarruq: Products, Documentation, Syariah Non-Compliance Risk, Syariah Concerns & Alternatives

Tawarruq is the preferred choice of contract for bankers not just for working capital requirements, but also for asset financing, mortgages, trade financing, fixed deposits, structured investments, and even savings account. In the last decade, Malaysia has experienced a rapid growth in Tawarruq based products for this reason. Hence, ensuring Syariah compliance with the policy document of Bank Negara is of paramount importance for all Islamic Financial Institutions (IFIs). This seminar offers comprehensive, concise and insightful update on the Syariah standards and operational requirements as well as legal documentation of Tawarruq and Tawarruq-based products. On the contrary, Tawarruq has also attracted criticisms as it imitates the conventional structures. Hence, we will explore on how we can move beyond Tawarruq by evaluating some alternatives in the final session of the seminar to ignite further discussion amongst industry practitioners to drive innovation in the industry.

Who Should Attend

• Product Development Staff
• Syariah Advisory Body and Syariah Department
• Syariah Audit & Syariah Compliance Review Team
• Internal Audit
• Risk Management
• Corporate lawyers
• Senior company management
• Regulatory authorities

Programme Objectives

• Assess the key Syariah and operational requirements for Tawarruq.
• Examine the legal documentations for Tawarruq.
• Formulate Tawarruq-based products with other contracts/concepts.
• Identify the gap between the Syariah standards and the existing practices.
• Prepare actionable steps to deal with Syariah non-compliance incidents in Tawarruq.
• Explore alternative concepts to move beyond Tawarruq.

Programme Dates