Standard Entry

Applicants should normally have:

• Completed secondary/high-school education or equivalent.
• GCSE/GCE O-Level, High School Diploma or equivalent international qualification.

Professional Entry

Applicants with qualifications in:

• Banking
• Islamic banking
• Finance
• Accounting
• Business
• Economics
• Islamic finance
• Shari’ah studies
• Financial services

may also be considered.

Mature Entry

Applicants without formal post-secondary qualifications may be considered based on relevant professional experience in:

• Banking
• Islamic banking
• Finance
• Accounting
• Microfinance
• Takaful
• Investment
• Treasury
• Customer service
• Financial operations

International Applicants

International applicants may be required to provide:

• Academic certificates/transcripts
• Proof of identity
• Qualification equivalency where applicable
• Certified English translations where necessary
• Evidence of English proficiency where required

Final admission requirements are subject to the accreditation and regulatory requirements applicable in the jurisdiction of delivery.

Duration: 6 Months
Structure: 2 Semesters × 3 Months
Mode: On-Campus | Virtual | Blended | In-House
Target Sector: Islamic Banks | Islamic Banking Windows | Commercial Banks | Takaful Institutions | Islamic Microfinance | Fintechs | Development Finance Institutions | Islamic Investment Institutions

Module 1: Foundations of Islamic Banking Operations

Key Topics

• Structure of Islamic financial institutions
• Islamic bank operating model
• Islamic versus conventional banking operations
• Front, middle and back office
• Branch and central operations
• Shari’ah principles applicable to transactions
• Riba
• Gharar
• Maysir
• Halal and prohibited activities
• Risk-sharing principles
• Asset-backed transactions
• Islamic banking operational workflow
• Roles of operations, compliance and Shari’ah functions

Practical Exercise:
Map the operational workflow of an Islamic bank from customer onboarding through transaction settlement.

Module 2: Islamic Customer Onboarding, Accounts & Deposits

Key Topics

• Customer onboarding
• Account-opening procedures
• Individual and corporate accounts
• Current accounts
• Savings accounts
• Investment accounts
• Mudarabah investment accounts
• Qard-based accounts
• Customer identification
• Beneficial ownership
• KYC/CDD
• Enhanced due diligence
• Customer risk classification
• Account mandates
• Dormant accounts
• Account closures
• Customer documentation
• Digital onboarding

European banking practice places strong emphasis on risk-sensitive customer due diligence and safe remote onboarding. The EBA’s remote-onboarding guidelines address customer identification, AML/CFT and data-protection considerations.

Practical:
Complete a simulated Islamic banking account-opening and KYC process.

Module 3: Islamic Banking Contracts & Transaction Processing

Key Topics

• Murabahah
• Mudarabah
• Musharakah
• Ijarah
• Salam
• Istisna’a
• Wakalah
• Qard
• Kafalah
• Rahn
• Wa’d
• Tawarruq
• Contract documentation
• Ownership and possession
• Transaction sequencing
• Agency relationships
• Profit calculation
• Operational controls

AAOIFI’s Shari’ah standards provide internationally recognized reference material covering a broad range of Islamic financial contracts and products.

Practical:
Process a complete simulated Murabahah transaction from customer request to settlement.

Module 4: Islamic Financing Administration

Key Topics

• Islamic financing application processing
• Financing documentation
• Murabahah financing administration
• Ijarah financing administration
• Musharakah financing
• SME financing
• Consumer financing
• Trade finance
• Asset acquisition
• Disbursement procedures
• Repayment administration
• Profit recognition
• Early settlement
• Rescheduling
• Default management
• Collateral administration
• Guarantees
• Financing documentation controls

Practical:
Prepare an Islamic financing file and process the facility through simulated disbursement.

Module 5: Islamic Payments, Transfers & Settlement

Key Topics

• Payment systems
• Islamic bank transfers
• Domestic payments
• International transfers
• Clearing and settlement
• Remittances
• Payment instructions
• Standing orders
• Cards and payment services
• Mobile payments
• Digital wallets
• Transaction authentication
• Payment fraud
• Transaction monitoring
• Reconciliation
• Settlement risk

Participants examine how conventional payment infrastructure can support Islamic financial institutions while ensuring the underlying transaction remains compliant with applicable Shari’ah and regulatory requirements.

Module 6: Islamic Banking Accounting & Reconciliation

Key Topics

• Islamic banking transaction accounting
• Murabahah accounting
• Ijarah accounting
• Mudarabah accounting
• Musharakah accounting
• Investment accounts
• Profit allocation
• Fees and charges
• Income recognition
• Impairment considerations
• General ledger
• Suspense accounts
• Daily reconciliation
• Branch reconciliation
• Inter-branch transactions
• Operational reporting
• Financial statements

AAOIFI maintains dedicated accounting standards for Islamic financial institutions, including standards dealing with Islamic financial products and financial reporting.

AAOIFI’s conceptual framework also establishes Shari’ah compliance as an overriding consideration in Islamic financial reporting.

Semester I Applied Assignment

Islamic Banking Operations Case Study

Participants process a simulated Islamic banking customer through:

Customer Onboarding → KYC/CDD → Account Opening → Islamic Product Selection → Transaction Processing → Accounting Entry → Reconciliation → Compliance Review

Module 7: Islamic Banking Compliance, AML/CFT & Transaction Monitoring

Key Topics

• AML/CFT fundamentals
• Customer risk assessment
• KYC/CDD
• Beneficial ownership
• Politically exposed persons
• Sanctions screening
• Suspicious transactions
• Transaction monitoring
• Enhanced due diligence
• Risk-based compliance
• Record keeping
• Regulatory reporting
• Financial crime risks in Islamic banking
• Digital transaction risks

European AML/CFT frameworks emphasize risk-based customer due diligence, beneficial-owner identification and proportionate controls based on the risk associated with individual relationships and transactions.

As of 2026, EU-level AML/CFT responsibilities have moved from EBA to the new Anti-Money Laundering Authority (AMLA), while existing EBA AML/CFT guidelines remain valid until replaced.

Practical:
Investigate a simulated suspicious Islamic banking transaction.

Module 8: Shari’ah Compliance & Internal Controls

Key Topics

• Shari’ah compliance framework
• Shari’ah Supervisory Board
• Shari’ah compliance function
• Shari’ah review
• Internal Shari’ah audit
• Shari’ah non-compliance risk
• Non-compliant income
• Purification
• Transaction documentation
• Operational controls
• Segregation of duties
• Four-eyes principle
• Maker-checker controls
• Exception management
• Internal control testing

AAOIFI’s governance standards specifically address the Shari’ah governance framework, Shari’ah compliance function, internal Shari’ah audit and Shari’ah Supervisory Board functions.

Module 9: Islamic Treasury & Liquidity Operations

Key Topics

• Islamic treasury operations
• Liquidity management
• Islamic money markets
• Sukuk
• Islamic investment instruments
• Interbank Islamic transactions
• Wakalah investment
• Commodity-based structures
• Central-bank facilities
• Liquidity buffers
• Asset-liability management
• Cash management
• Foreign exchange operations
• Investment account liquidity

Practical:
Develop a one-day liquidity-management plan for an Islamic bank.

Module 10: Digital Islamic Banking & Fintech Operations

Key Topics

• Digital Islamic banking
• Mobile banking
• Internet banking
• Digital onboarding
• Digital payments
• Islamic fintech
• Islamic crowdfunding
• Digital Sukuk
• Blockchain
• Smart contracts
• AI in Islamic banking
• Digital identity
• Cybersecurity
• Fraud prevention
• Data protection
• Operational resilience

The programme examines how digital technologies can be incorporated into Islamic banking while maintaining appropriate Shari’ah, operational, regulatory and cybersecurity controls.

Module 11: Islamic Banking Risk, Audit & Operational Resilience

Key Topics

• Credit risk
• Market risk
• Liquidity risk
• Operational risk
• Shari’ah non-compliance risk
• Fiduciary risk
• Legal and compliance risk
• Fraud risk
• Cyber risk
• Internal audit
• Operational risk indicators
• Business continuity
• Disaster recovery
• Incident management
• Outsourcing risk
• Operational resilience

The Federal Reserve’s current examination framework emphasizes identifying, measuring, monitoring and controlling banking risks and effective internal controls across credit, market, liquidity, operational, compliance and legal risks.

The programme adapts these general banking-control principles to Islamic financial operations.

Module 12: Islamic Banking Operations Management & Capstone

Key Topics

• Operations strategy
• Service-level management
• Branch operations
• Operations performance
• Process improvement
• Operational dashboards
• Quality assurance
• Customer complaints
• Process automation
• Islamic banking transformation
• Operational risk culture
• Future of Islamic banking operations

INTEGRATED CAPSTONE

Participants undertake a complete simulated Islamic Banking Operations Management Project.

The project follows:

Customer Onboarding → KYC/CDD → Account Opening → Islamic Financing → Transaction Processing → Payment → Accounting → Reconciliation → Compliance Review → Shari’ah Review → Risk Control → Management Reporting

Participants present their solution to a simulated:

Islamic Bank Operations & Shari’ah Compliance Committee

AAOIFI — Islamic Finance Benchmark

The programme places AAOIFI at the centre of its Islamic banking operational framework because AAOIFI develops Shari’ah, accounting, auditing, ethics and governance standards specifically for Islamic financial institutions. AAOIFI reports that its standards are used mandatorily or voluntarily across major Islamic-finance markets.

The programme particularly draws on:

• AAOIFI Shari’ah Standards
• AAOIFI Financial Accounting Standards
• AAOIFI Governance Standards
• Shari’ah compliance principles
• Internal Shari’ah audit principles
• Islamic finance operational governance

IFSB — Prudential & Risk Benchmark

The curriculum also incorporates the international prudential perspective applicable to Islamic financial institutions, particularly:

• Risk management
• Capital adequacy
• Liquidity
• Governance
• Operational risk
• Investment account considerations
• Disclosure
• Supervisory expectations

This allows learners to understand the relationship between Islamic banking operations and modern prudential banking supervision.

European Benchmarking

The programme incorporates European banking principles concerning:

• Customer protection
• AML/CFT
• Customer due diligence
• Remote customer onboarding
• Payment services
• Digital banking
• Data protection
• Operational controls
• Complaints management

The EBA’s consumer-protection framework covers retail banking products including payment accounts, payment services, electronic money, deposits, consumer credit and mortgages.

U.S. Benchmarking

The programme incorporates U.S.-style banking supervisory concepts relating to:

• Internal controls
• Operational risk
• Consumer compliance
• Banking examination
• Risk management
• Financial crime controls
• Customer protection
• Documentation and record keeping

The Federal Reserve’s examination framework emphasizes sound management and effective internal controls across the major categories of banking risk.

The programme adopts a practical Islamic banking operations model:

Participants will work through realistic operational scenarios involving:

• Islamic account opening
• Customer due diligence
• Murabahah processing
• Ijarah administration
• Islamic payments
• Islamic deposits
• Financing documentation
• Profit calculations
• Reconciliation
• AML transaction monitoring
• Shari’ah compliance
• Internal controls
• Digital banking

Practical assessment will test the learner’s ability to:

• Process Islamic banking transactions
• Complete operational documentation
• Apply Shari’ah requirements
• Perform KYC/CDD
• Identify operational risks
• Conduct reconciliations
• Apply internal controls
• Identify potential Shari’ah non-compliance
• Handle customer and transaction exceptions
• Prepare operational reports

Graduates will be prepared for operational and support roles within Islamic and conventional financial institutions offering Shari’ah-compliant products.

Potential Job Titles

• Islamic Banking Operations Officer
• Islamic Banking Officer
• Islamic Finance Operations Officer
• Islamic Banking Branch Officer
• Islamic Banking Customer Service Officer
• Islamic Account Officer
• Islamic Financing Administration Officer
• Islamic Payments Officer
• Islamic Banking Compliance Assistant
• Shari’ah Compliance Assistant
• Shari’ah Operations Officer
• Islamic Treasury Operations Assistant
• Islamic Banking Reconciliation Officer
• Islamic Banking Back-Office Officer
• Islamic Banking Processing Officer
• Islamic Banking Quality Assurance Officer
• Islamic Banking Operations Analyst
• Islamic Finance Administration Officer

Potential Employment Sectors

Banking

• Islamic commercial banks
• Islamic banking windows
• Conventional banks with Islamic finance divisions
• Digital Islamic banks

Financial Services

• Islamic microfinance institutions
• Takaful companies
• Islamic investment companies
• Islamic asset-management firms
• Development finance institutions
• Islamic fintech companies
• Islamic payment institutions

Public & Regulatory Sector

• Central banks
• Banking regulators
• Financial-services authorities
• Government-owned financial institutions

The programme is designed for application across major Islamic-finance markets:

Gulf/MENA | Malaysia | Indonesia | Pakistan | Bangladesh | Africa | United Kingdom | Europe | North America | Emerging Markets

It is especially relevant for institutions operating Islamic banking windows within conventional banking systems, because learners develop an understanding of both Islamic financial requirements and mainstream banking operational controls.

IBSF INTERNATIONAL CERTIFICATE IN ISLAMIC BANKING OPERATIONS

Duration: 6 Months | 2 Semesters | 3 Months Each

The Certificate in Islamic Banking Operations is a practical professional programme designed to develop competence in the day-to-day operations, administration, customer servicing, transaction processing, financing administration, Shari’ah compliance and internal controls of Islamic financial institutions.