Assignment 2 – Shari’ah compliance

1. Discuss how information technology might impact on an IFI’s ability to

achieve Shari’ah compliance?

Ans.

From a technology perspective, the market share will always be inclined towards vendors
whose system will provide flexibility, scalability and is more customer-centric.

It often forms an integral part of a business transformation programme addressing key

banking
issues such as:
.Increasing market share through unique positioning
.Reducing Total Costs of Ownership (TCO)
.Providing a single customer view and the related activities, portfolios, products, etc. while
providing customers with a single view of the bank’s products and services
.Delivering a consistent customer experience across multiple channels and providing full
visibility to the bank’s sales and servicing agents, enabling ‘anywhere, anytime’ banking
.Providing enterprise-wide information relating to regulatory reporting and risk management
.Creating less dependency on IT and more flexibility for business users

2.All Islamic financial institution has established a committee of three

scholars to advice on its operations. The main task is to issue the
Fatwa and to review its operations for the purposes of issuing a
Shari’ah certification of compliance, to be included in the annual
financial report. Does this reflect the work of a Shari’ah advisory or
Shari’ah supervisory board? Discuss your answer.

Ans.

Yes this reflects the work of shariah advisory boraxs because they
know the shariah and that also impa2 on the customers because people
believe whatever they say even only presenc of their makes it to be
authorized even if they don't discuss. But their fatwa is important for
the customers so they are reflecting in this
 3.A Shari’ah compliance officer functions like a legal compliance
officer in most financial institutions. In what sense, does the role and
function of the Shari’ah compliance officer differ from a Shari’ah
supervisory board?

Ans.
Shariah complaince officer are defrent in sense of that they can only give the
information to customers and to internal em8 but can not give the fatwa on
shariah complaince and tje advisory boards are there to give the fatwa only.