3. OBJECTIVE
3
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)
4. COURSE DESCRIPTION
4
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.
5. COURSE CONTENT
5
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
6. SCHEME OF WORK
6
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
7. ASSESSMENT
7
Continuous Assessment
50%
Quiz : 5%
Test : 15%
Group Assignment : 10%
Individual Task : 10%
Presentation : 10%
Final Examination 50%
TOTAL 100%
8. REFERENCES
8
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.
9. REFERENCES
9
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
10. REFERENCES
10
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
11. REFERENCES
11
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.
12. FORMAT OF ASSIGNMENT
12
Font:
Use Times New Roman
Size: 12
Spacing:
Double
10-15 pages
Primary references:
THREE books or
FIVE articles from journal
13. REFERENCING
13
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.
14. REFERENCING - EXAMPLE
14
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.
15. REFERENCING - EXAMPLE
15
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)*
16. TABULATION OF MARKS
16
Introduction = 1%
Facts = 3%
Explanation = 3%
Conclusion = 1%
Reference = 2%
Total = 10%
17. FORMAT OF PRESENTATION
17
Format:
Power point presentation
Time of presentation:
30 minutes
Q & A session:
20 minutes
18. TABULATION OF MARKS
18
Explanation of facts = 4%
Q&A = 4%
Creativity = 1%
Time management = 1%
Total = 10%
