Islamic Banking — Governance, Risk and Shariah Compliance Training Course

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Introduction Key Learning Outcomes Training Methodology Who Should Attend? Outline

Introduction

Islamic banking is no longer a regional story. Strong concentrations remain in the Gulf, Malaysia, and Pakistan, but the industry now has serious footprints in the United Kingdom, parts of Africa, and across South-East Asia. With growth comes regulatory expectation, and a clearer demand from supervisors that Shariah governance be evidenced, not just asserted.

This training course examines the architecture that supports that evidence. We work through the AAOIFI and IFSB standards, the responsibilities of the Shariah Supervisory Board, the mechanics of Shariah audit, and the convergence between Islamic prudential treatment and Basel. Where contemporary issues bite (digital banking, fintech, sustainable finance) we address them head on rather than treating them as add-ons.

Key focus areas include:

Shariah governance framework and the dual-layer model
AAOIFI standards on accounting, governance, ethics, and Shariah
IFSB Core Principles and Islamic prudential treatment
Shariah Supervisory Board responsibilities and effectiveness
Shariah non-compliance risk and remediation

Key Learning Outcomes

By the end of the training course, participants will be able to:

Explain the structure and purpose of the Shariah governance framework
Apply AAOIFI Governance Standards and IFSB Core Principles for Islamic Finance Regulation
Evaluate Shariah Supervisory Board composition, independence, and effectiveness
Identify, measure, and remediate Shariah non-compliance risk
Differentiate Islamic-specific prudential treatment under IFSB from conventional Basel
Strengthen product governance, Shariah audit, and reporting practices

Training Methodology

Each day blends instruction with case discussion drawn from leading Islamic banking jurisdictions. Participants engage with real Shariah governance arrangements, real product disputes, and real supervisory expectations. Discussion is the point. The training course is most useful when participants bring questions and contested situations from their own institutions.

Islamic Banking — Governance, Risk and Shariah Compliance

Who Should Attend?

The training course is well suited to:

Board members and senior executives of Islamic financial institutions
Shariah Supervisory Board members and Shariah department professionals
Risk, compliance, and audit professionals within Islamic banks
Regulators and supervisory staff working on Islamic finance
Legal advisers, product structuring teams, and treasury professionals
Senior managers within conventional banks operating Islamic windows

Course Outline

Day 1

Foundations of Islamic Banking and the Governance Framework

Principles of Islamic commercial law relevant to banking
Prohibition of riba, gharar, and maysir, and the contracts that replace them
Islamic financial contracts: murabaha, ijara, mudaraba, musharaka, wakala, salam, istisna
The dual-layer governance model: prudential and Shariah
Comparative regulatory landscape: GCC, Malaysia, Pakistan, UK, and emerging markets

Day 2

International Standards: AAOIFI and IFSB

Role and structure of AAOIFI: accounting, auditing, governance, ethics, and Shariah standards
Key AAOIFI Governance Standards and their practical application
Role and structure of the IFSB
IFSB Core Principles for Islamic Finance Regulation
Local-first, standards-aligned: how national regulators adopt and adapt international standards

Day 3

Shariah Supervisory Board: Composition, Independence, and Effectiveness

Role, mandate, and responsibilities of the Shariah Supervisory Board
Fit-and-proper criteria, qualifications, and tenure
Independence, conflicts of interest, and external Shariah advisers
Meetings, decisions, and the issuance of fatwas
Reporting lines and interaction with the board, management, and regulator

Day 4

Shariah Non-Compliance Risk and Internal Shariah Audit

Defining Shariah non-compliance risk within the risk taxonomy
Identification, measurement, and key risk indicators
Product governance: pre-approval, ongoing review, and post-launch monitoring
Internal Shariah audit: mandate, methodology, and reporting
Remediation, purification of income, and disclosure of Shariah non-compliance events

Day 5

Prudential Treatment, Digital Banking, and Emerging Issues

IFSB capital adequacy, liquidity, and stress testing standards
How Islamic prudential treatment complements and differs from Basel
Digital Islamic banking and fintech: Shariah considerations
Sustainable Islamic finance and the integration of ESG
Case studies, action planning, and self-assessment

International Standards & Professional Alignment

Our training courses are aligned with internationally recognised professional standards and frameworks across leadership, strategy, finance, governance, risk, compliance, and audit. By integrating globally trusted models, we ensure learners develop practical, relevant, and industry-recognised capabilities.

Our trainings draw on leading international standards and professional frameworks, including ISO, ISACA, COSO, OECD, IIA, FATF, Basel, IFRS/ISSB, GRI, NIST, CPD, ILM and the OECD AI Principles. This alignment ensures consistency with global best practices across financial management, risk oversight, digital governance, sustainability, and strategic decision-making..

Designed in alignment with globally recognised professional bodies, our courses support continuous professional development, strengthen organisational capability, and provide clear pathways toward professional certifications valued worldwide.

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