Tawarruq: Operational Requirements
Tawarruq: Operational Requirements
Ard, Islam, Shariah , Takaful , Tawarruq
Ard, Islam, Shariah , Takaful , Tawarruq
Transcription
- Tawarruq : Operational Requirements (Selected issues) 28 March 2016 Jabatan Perbankan Islam dan Takaful (JPIT) 1
- Overview Tawarruq Policy objectives : Provide reference on the Shariah rulings on tawarruq; Set out key operational requirements governing implementation of tawarruq; & Promote end-to-end compliance with Shariah, sound banking practices and sound business conduct. Policy structure: Shariah Requirements Definition & nature Operational Requirements I. Governance & oversight Establish comprehensive governance & oversight framework Essential features II. Structuring Structuring supported by adequate infrastructure, internal policies & document Optional practices III. Risk management Sound & integrated risk management system to manage risk throughout life-cycle Dissolution of contract IV. Business & market conduct Disclosures to assist informed decision making & fair dealings requirements Tawarruq with other contracts/ arrangements V. Financial disclosure Adequate disclosures to assist stakeholders’ understanding & assessment Jabatan Perbankan Islam dan Takaful (JPIT) 2
- Execution of tawarruq with dual agency Proper execution & recording Treatment as qard Normal close of business/operation including public holidays etc. Unexpected disruptions to operation e.g. system breakdown, force majeure etc. Reasonable processing period no later than 3 working days from the date funds received i.e. T+2 Execution Clear segregation of roles & duties performed under dual-agency e.g. designating separate personnel to perform each role or implementing appropriate system that will independently execute dual agency roles e.g. short messaging systems (sms) or telephone calls Selling price & profit computation Reporting/ Disclosure Absolute selling price has to specified Profit computation to begin after tawarruq has been executed Prior to execution, profit in terms of hibah can be provided Amount held as amanah or qard has to be disclosed separately prior to execution of tawarruq Jabatan Perbankan Islam dan Takaful (JPIT) 3
- Tawarruq with hamish jiddiyah Proper execution & recording Reporting/ Disclosure Selling price & profit computation Market conduct Amount of hamish jiddiyah has to be disclosed separately prior to execution of tawarruq Selling price and hamish jiddiyah has to be specified separately Hamish jiddiyah can only be considered as part payment of selling price or profit after execution of tawarruq Hamish jiddiyah cannot be promoted as “advanced profit” or payment of profit if tawarruq has not been executed Jabatan Perbankan Islam dan Takaful (JPIT) 4
- Selection of approved asset trade / asset exchange Ensure end-to-end Shariah compliance Selection criteria Monitoring subject to comprehensive risk assessment and arrangement does not impair IFI’s ability to monitor and control its activities and adhere to Shariah and regulatory requirements financial soundness of asset trader / asset exchange including financial performance, volume of trades and number of customers operational capability including adequate systems, trading capacity, delivery capacity, asset, quality specification availability of Shariah compliance oversight function. If such function is not available, SC has to endorse establish controls to ensure service delivery in a manner expected in accordance with Shariah and regulatory requirements e.g. risk of delivery, performance reliability and processing capacity maintain continuous and effective engagement with asset trader/asset exchange to ensure on-going ability to meet requirements of Shariah and regulators. Jabatan Perbankan Islam dan Takaful (JPIT) 5
- END OF PRESENTATION Jabatan Perbankan Islam dan Takaful (JPIT) 6
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