OBJECTIVE3 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)
COURSE DESCRIPTION4 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.
COURSE CONTENT5 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
SCHEME OF WORK6 METHO COURSE CONTENT TOPIC WEEKS D 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
ASSESSMENT7 Continuous Assessment 50% Quiz : 5% Test : 15% Group Assignment : 10% Individual Task : 10% Presentation : 10% Final Examination 50% TOTAL 100%
REFERENCES8 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.
REFERENCES9 Engku Rabiah Adawiah, “Islamic Law Compliance Issues in Sale-Based Financing Structures As Practiced in Malaysia”  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
REFERENCES10 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
REFERENCES11 Cases: Bank Islam Malaysia Bhd. v. Lim Kok Hoe & Anor. and Other Appeals  CLJ JT (4) Arab-Malaysian Finance Bhd. v. Taman Ihsan Jaya Sdn. Bhd. & Ors  5 MLJ 631 Malayan Banking Bhd. v. Ya’kup Oje & Anor.  5 CLJ 311 Affin Bank Bhd v. Zulkifli Abdullah  1 CLJ 438 HC Bank Kerjasama Rakyat Malaysia Bhd v. Emcee Corparation Sdn Bhd  1 CLJ 625 (CA) Dato Nik Mahmud Bin Daud v. Bank Islam Malaysia Berhad  4 MLJ 295 ;  1 CLJ 576. Bank Islam Malaysia Berhad v. Adnan Bin Omar  3 CLJ 735 ;  3 AMR 44. Bank Islam Malaysia Berhad v. Tinta Press Sdn. Bhd  MLJ 256 ;  1 CLJ 474.
FORMAT OF ASSIGNMENT12 Font: Use Times New Roman Size: 12 Spacing: Double 10-15 pages Primary references: THREE books or FIVE articles from journal
REFERENCING13 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.
REFERENCING - EXAMPLE14 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.
REFERENCING - EXAMPLE15 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)*