Module FINN45315: Islamic Law and Financial Transactions

Department: Finance

FINN45315: Islamic Law and Financial Transactions

Tied To

• L1T509: Accounting
• N3K109: Finance
• N3KC09: Finance (Financial Technology and Banking)
• N3KD09: Islamic Finance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• To provide students with an advanced understanding of key concepts of Islamic law related to commercial and financial transactions.
• To enable students to critically evaluate the process of law making in Islam.
• To provide students with an advanced understanding of the principles and implications of Islamic law for financial transactions.
• To critically examine the application of Islamic contracts in Islamic financial institutions and different legal jurisdictions.

Content

• Introduction to a brief history of Islamic Law.
• Methodology of Islamic Law (Usul-al Fiqh)
• Rationalising Riba and Gharar as financial frictions
• Types of Traditional Nominate Contracts
• Application of Islamic contracts in Contemporary Financial Transactions
• Shariah Governance
• Issues related to the application of Islamic Law and financial transactions
• Islamic banking law/statutes

Learning Outcomes

• An advanced knowledge of the nature and scope of Islamic Law and its application in financial transactions.
• Advanced understanding of the application of Islamic contracts in contemporary financial transactions.
• An advanced knowledge of the issues related to implementing Islamic contracts consistent with the objectives of the Islamic Law (Maqasid al-Shariah).
• An advanced understanding of organizational and legal issues related to applying Islamic law during contemporary times.

• The ability to evaluate the principles of Islamic law and its applications in financial transactions.
• The ability to explain convincingly the rationale for the prohibition of riba and gharar and its implications for Islamic finance.
• The ability to critically review the contracts used in Islamic banking and finance.
• An advanced ability to analyse the role of Shari'ah boards in product development and compliance at Islamic financial institutions.
• The intellectual capacity to ascertain the problems of implementation of Islamic financial transactions.

• Independent learning within a defined framework of study at an advanced level.
• Independent thought in analysing and critiquing existing scholarship on the subject area and in evaluating its contribution.
• The ability to seek out and use relevant data sources, including electronic and bibliographic sources.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• The modes of teaching are lectures which provide students with an opportunity to learn new concepts, principals, and philosophies and seminars, which allow the students to discuss freely the assigned topics.
• Summative assessment is by an assignment. The assignment supports students' acquisition and articulation of their knowledge and skills and their ability to apply what they have learned in a practical context.
• The formative assessment involves a group presentation of case studies or projects discussed in workshops. The formative assessment aims to help students practice their knowledge and skills and gain written feedback on their performance in preparation for the summative assignment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

Students will receive written comments for a group presentation, as well as feedback on exercises on real-world case studies in class. Additional formative assessment and feedback may take a number of forms such as oral feedback on work prepared by students for seminars; and answers to questions discussed during a seminar.