With the support of the Monetary Authority of Singapore (MAS), the 5th Annual World Islamic Banking Conference: Asia Summit (WIBC Asia 2014) was held in Singapore on the 2nd, 3rd and 4th of June 2014.
Nizam Ismail, Partner, RHTLaw Taylor Wessing took part as the only private sector representative in a Panel discussing the evolving regulatory and legal landscape for Islamic Finance: Global Developments and Regional and Domestic Implications.
During the panel discussion, Nizam suggested the need for Mutual Recognition Arrangements between Singapore and the Middle East, to facilitate more cross-border transactions, especially for products like Shariah-compliant funds, Islamic REITS and Business Trusts. While this is a long-term and complex process, regulatory efforts should commence now.
Nizam compared the varying regulatory approaches taken by Singapore and Malaysia to facilitate Islamic Finance to suit the needs for their respective jurisdictions. Nizam pointed out the need for banks and financial institutions to pay more focus on developing robust Islamic Finance Compliance Frameworks to meet increasing regulatory expectations and cautioned that the risk of non-Shariah compliance not only brings reputational risks, but also legal and statutory criminal risks (for instance, in Malaysia).
RHTLaw Taylor Wessing is a proud sponsor of the 5th Annual World Islamic Banking Conference.