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The Certified Islamic Specialist in Trade Finance

Economic relations between nations have often been characterized by the dependence of these nations on one another to satisfy their needs of goods and services .This makes of trade one of the most vital sectors in any society be it developed or still developing for foreign trade has served as a link connecting nations to each other and has often represented a core indicator on a state’s productivity and competitiveness capacities in the international market, as well as the state’s ability to export and import, and the reflection of all that on the state’s balance of foreign currencies and its impacts on the trade balance.

Financial institutions play a significant role in the financing of Trade Finance and the establishment of trust between exporters and importers. For this end, international institutions have been established to regulate this sector.

Customs and international regulations have been instituted on letters of guarantee and letters of credit and other principles governing Trade Finance contracts and its financing mechanisms, and to ensure the proper implementation of its procedures and the identification of its terminology.

The Islamic finance industry has contributed to Trade Finance by devising a set of innovative financial products compliant with the Islamic Sharia, and developed a number of controls on modern applications in accordance with the nature and characteristics of Islamic banking.

The Certified Islamic Specialist in Trade Finance will allow for the mastery of the requirements and the prerequisites necessary for the conclusion of commercial contracts relating to Trade Finance with the focus being laid on the preparation and implementation of documents related to letters of guarantee for the Trade Finance. It will also present a detailed view of the letters of credit and other similar operations in the domain of Trade Finance. Similarly, it will provide a view of the mechanisms of the letters of credit, their conditions, their types, their provisions, their various complexities, their Islamic legal controls, the risks they involve and ways to avoid them.

Introduction:

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Objectives:

Treasury & Capital Market Supervisor/ Managers1. Dealers2. Auditors & Consultants 3. Investment and corporate bankers4. Treasury Back officers 5. Regulators6. Legal Advisors7. Investment Placement & Treasury Sales 8. Private Bankers & Wealth Management9.

Recognize the risks faced by conventional banks 1. and identify those risks unique to Islamic banksAppreciate the importance of credit risk 2. management in Islamic banks and demonstrate understanding of the systems, methods and procedures for credit risk mitigationComprehend the process for controlling 3. operational risk through sound financial reporting systems and monitoring of asset qualityUnderstand capital adequacy as it applies to 4. Islamic banks Discuss the operations and constraints of an 5. Islamic treasury Understand the transactions which are off balance 6. sheet in treasury operationsUnderstand the concept of asset liability 7. managementComprehend the concept of asset liability 8. management as it applies to an Islamic bankDemonstrate a broad understanding of liquidity 9. management in Islamic banks with special emphasis on the issues faced and the liquidity management tools currently availableUnderstand the process of securitization and 10. constraints of Islamic securitization

Target Audience:

CIS in Trade Finance

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Program of the Certificate

1. Importance of Trade Finance and means of its financing The situation of Trade Finance in the Islamic world •International bodies and the regulations governing Trade Finance•The risks of Trade Finance and the existing mechanisms and institutions •to mitigate themAnalysis of credit for Trade Finance •The role of Islamic banks in the financing of Trade Finance •

2. Bills for collection and documentary draftsTypes of bills of collection, and documents pertaining to them•Management bills of collection •Uniform rules and norms for collection •The Islamic application of the Bills of collection in Trade Finance•

3. Standby Letters of Credit and Letters of GuaranteeThe need for Standby Letters of Credit and their types•Documents required in the Standby Letters of Credit•Uses of Standby Letters of Credit and the procedures for their implementation•The risks of handling Standby Letters of Credit•Standard Rules and norms for the Standby Letters of Credit and Letters of Guarantee•Characteristics and Islamic controls of the Standby Letters of Credit•Islamic banks' applications of the Standby Letters of Credit•

The Certified Islamic Specialist in Trade Finance

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34. Documentary Credits

Financing of Trade Finance by documentary credits •Relationships and obligations between the parties •using Documentary Credits Types of credits, required documents and executive •procedures Terms relating to Trade Finance•International standard rules and norms of •documentary credits Islamic background of documentary credits •Shari'a standard of documentary credits •Islamic banks' applications of documentary credits •Mechanisms for the implementation of the credits •of Wakala, Murabaha, Musharaka, and Mudharaba Mechanisms for the implementation of export and •import credits

5. Guarantees of international contractsRole of Guarantees in Trade Finance exchange•Types of Guarantees of international contracts and •their management Legal aspects of the guarantees of international •contracts International standard rules and norms of bank bailout •guarantees Provisions of guarantees in Islamic financial •transactions Islamic Background of bank bailout guarantees•Applications of bank bailout guarantees•

6. Banking operations related to Trade FinanceBanks correspondent and the settlement of •reporters' accountsForeign incoming and outgoing remittance•Bank checks in foreign currencies •Anti-Money Laundering •

CIS in Trade FinanceThe Certified Islamic Specialist in Trade Finance