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SUBJECT: FINANCE . PLEASE ANSWER ASAP QUESTION ONE ABC Islamic Bank (bank) through its Consumer Banking Department has provided a personal financing facility to its
SUBJECT: FINANCE .
PLEASE ANSWER ASAP
QUESTION ONE ABC Islamic Bank ("bank") through its Consumer Banking Department has provided a personal financing facility to its customers based on tawarrug (commodity murabahah) concept. In providing the commodity murabahah facility, the bank has conducted the transaction in the following manner using crude palm oil (CPO) as the underlying asset: With reference to the Policy Document on Tawarrua issued by Bank Negara Malaysia, answer the following questions: a) Advice whether the above transaction falls within Shariah non-compliance and propose ways to rectify the issues identified using Shariah internal control mechanisms. b) Assess two types of consequences that shall be faced by ABC Islamic Bank if there is an actual Shariah non-compliance event. QUESTION ONE ABC Islamic Bank ("bank") through its Consumer Banking Department has provided a personal financing facility to its customers based on tawarrug (commodity murabahah) concept. In providing the commodity murabahah facility, the bank has conducted the transaction in the following manner using crude palm oil (CPO) as the underlying asset: With reference to the Policy Document on Tawarrua issued by Bank Negara Malaysia, answer the following questions: a) Advice whether the above transaction falls within Shariah non-compliance and propose ways to rectify the issues identified using Shariah internal control mechanisms. b) Assess two types of consequences that shall be faced by ABC Islamic Bank if there is an actual Shariah non-compliance eventStep by Step Solution
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