Browse by Author "Randi Swandaru"
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- PublicationCan fraud in Islamic financial institutions be prevented using high standards of Shariah governance?Randi Swandaru; Aishath Muneeza (Emerald Publishing Limited, 2022)
This study aims to scrutinize the modus operandi of global financial frauds in Islamic financial institutions and assesses whether those frauds can be prevented using high standards of Shariah governance. A qualitative research methodology is deployed to conduct this study by analyzing and scrutinizing academic journals, reports, regulatory guidelines and articles The findings in this study show that the modus operandi ranges from bribery, forged documents, unlawful profiteering, credit limit allowance ignorance, Ponzi scheme, culprit collaboration from inside and outside the banks. This paper also argues that the centralized and high-standard Shariah governance framework better prevents fraud by providing better Shariah supervision and risk management measures. The observations in this study are limited to financial fraud at Islamic financial institutions that happened in the 21st century with more than $100m in financial loss or penalty. This study may contribute significantly by providing insight for regulators to strengthen the Shariah governance framework in their respective countries. It also benefits Islamic financial institutions by enhancing their capacity to anticipate future financial fraud.
- PublicationCan micro-enterprises use tawarruq fardi financing (TFF) for fund raising?Randi Swandaru; Aishath Muneeza; Sumaira Siddiky (Emerald Publishing Limited, 2022)
Micro-enterprises, like any other business entity, face financing challenges. However, micro-enterprises often cannot access financial institutions as they cannot fulfill the conditions to obtain financing facilities from a formal financial institution. As such, they have to rely on family or friends for financing needs. The most critical challenge faced in this regard to Muslim micro-enterprises is finding out a way in which family and friends could give a financial helping hand without the involvement of riba (interest). At the same time, the person giving the financing can enjoy a profit. This paper aims to propose the tawarruq fardi financing (TFF) model that Islamic micro-enterprises could use to fulfill their financial needs. It becomes a solution when obtaining financing from friends and family or any other third party who could be a private investor who does not want to engage in an equity relationship. This study adopts a qualitative research methodology, combining descriptive and content analysis using the inductive reasoning approach. The paper's outcome shows that the proposed TFF could assist Islamic micro-enterprises in obtaining Shariah-compliant financing without engaging in an equity partnership. It allows them to fulfill their financing needs bearing in mind the interest of both parties involved in the transaction.
- PublicationCauses for near default sukuk cases in the 21st century and their rescue mechanismsRandi Swandaru; Aishath Muneeza (Sharia Economics Study Program and Sharia Banking Study Program, Universitas Islam Raden Rahmat, 2024)
This study aims to examine the reasons that triggered sukuk to nearly default in the 21st century and the rescue mechanisms they used under the circumstance. This research is constructed as a case study examining selected near default sukuk cases from across jurisdictions. It is found that the main issues that triggered sukuk to nearly default are the lack of development of shariah governance, the backwardness in harmonizing Shariah standards, and poor risk management through the business cycle of the underlying project. It is also found that two main rescue mechanisms are used in handling the sukuk that nearly defaulted. The first way is using commodity murabaha to pay out ijarah sukuk holders, as in the case of Ingress sukuk. The second way is by altering the terms of mudharabah sukuk to accommodate the aspiration of the sukuk holders, as in the case of Dana Gas sukuk. An anomaly in this regard is observed in Nakheel's case, where no restructuring effort was conducted as the Emirate of Dubai covered some of the debts.
- PublicationThe role of multilateral organizations in the development of Islamic finance in AsiaPriyesta Rizkiningsih; Cindhi Cintokowati; Randi Swandaru; Aishath Muneeza; M. Kabir Hassan (Edward Elgar Publishing, 2024)
Islamic finance rose significantly after World War II, with the independence of many Muslim populated countries in Asia and Africa. The trajectory started with a pilot project called Mit Ghamr Bank in Egypt in 1963, followed by Dubai Islamic Bank's enactment in 1975. Noticing the potential of Islamic finance, many multilateral organizations now embrace Islamic finance to achieve shared goals. The emerging Islamic financial institutions and their increasing financing volume have triggered significant awareness for the Muslim community to develop standards for Shari'ah transactions, governance, ethics, and many more. Thus, several multilateral organizations have emerged to shape a sound Islamic financial system and aim for wider prosperity and justice.
- PublicationRole of zakat in responding to COVID-19 pandemic: lessons learnt and way forwardRandi Swandaru; Magda Ismail Abdel Mohsin (Emerald Publishing Limited, 2022)
COVID-19 pandemic has impacted global human lives, killing millions and attacking the real economy to its core. United Nations has called for global solidarity to overcome this unprecedented disaster. Having said that, zakat has been utilized to respond to this ongoing suffering in Muslim countries. This chapter explore zakat utilization for COVID-19 under the shariah perspective and discuss the role of zakat to respond to the pandemic in Muslim countries. A qualitative methodology including conceptual and content analysis is applied to conduct this study. The findings show that most sharia scholars agreed to utilize zakat for the COVID-19 pandemic and endorse advance zakat payment. Moreover, zakat has been disbursed mainly to fulfil basic needs, support emergency health services, sustain education activities, recover economic impact and maintain dakwah programme. The global zakat institutions have also started up the international initiative to respond to this pandemic. This study contributes to the academia on showing how zakat is a conceivable and reliable instrument to give immediate response to this pandemic in Muslim countries. The best practices found in this study are worthy for zakat institutions to continue their programme under this pandemic and be resilient for the next global scale of disasters.
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