Financial Crime World

IRAQ: Compliance Training for Financial Institutions Emphasizes Shariah Compliance and Risk Management

Introduction

The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) recently organized a training program on “Risk Management in Islamic Financial Institutions” at the Central Bank of Iraq. This course was part of the OIC Central Banks Capacity Building Programme (OIC-CB- CaB) aimed at enhancing the capacity of central banks in member countries.

Training Program

The three-day training, held from March 3 to 5, 2014, brought together relevant experts from the Central Bank of Iraq and featured a guest lecturer, Mr. Abdul Samad, Member Shariah Compliance Department, AlHuda CIBE.

Topics Covered

During the course, participants explored various topics crucial to Islamic finance, including:

  • Methodology of Shariah for Ibadat and Muamalat
  • General principles of Islamic Law of Contracts
  • Introduction/practical aspect of Islamic modes of financing commonly used
  • The concept of risk management in Islamic finance
  • Common risks faced by Islamic and conventional financial institutions
  • Risk specific to Islamic financial institutions
  • Unique counterpart risks in Islamic modes of financing

Objectives

The training program aimed to equip participants with a comprehensive understanding of Shariah compliance and risk management principles in Islamic financial institutions. It also sought to enhance their capacity to identify and mitigate potential risks, ultimately contributing to the stability and growth of the Iraqi financial sector.

Benefits

By attending this training program, participants gained valuable insights into Shariah compliance and risk management practices, enabling them to:

  • Identify potential risks and mitigate them
  • Enhance the stability and growth of the Iraqi financial sector
  • Improve their understanding of Islamic finance principles and practices

Conclusion

The training program was a success, providing participants with a deeper understanding of Shariah compliance and risk management in Islamic financial institutions. This initiative demonstrates SESRIC’s commitment to supporting the development of Islamic finance in member countries and enhancing the capacity of central banks in the region.