RF BANKINGRF BANKING ((RibaRiba--Free Islamic BankingFree Islamic Banking))RF BANKINGRF BANKING ((RibaRiba Free Islamic BankingFree Islamic Banking))Towards A Real RibaTowards A Real Riba--Free Life StyleFree Life Style

Opportunities for Tomorrow:Opportunities for Tomorrow:Laws of The Land in the West and The Shari’aaLaws of The Land in the West and The Shari’aa

Dr. Yahia AbdulDr. Yahia Abdul--RahmanRahmanFounder of The LARIBA System Founder of The LARIBA System -- Since 1987Since 1987

GIFF GIFF –– The Royal Award for Islamic FinanceThe Royal Award for Islamic FinanceKuala Lumpur, Malaysia Kuala Lumpur, Malaysia –– October 27, 2010October 27, 2010p yp y

Ribbit/Riba – Free Banking in the USAThe Laws of the Land and The Shari’aa

The RF Industry: ACHIEVEMENTS

– Global Brand Name– Qualified Human ResourcesQ– Academic Research and Education– Products and Services– Infrastructure– Abundant CAPITAL

Back To The Future! Back To The Future! RIBA/RIBBITRIBA/RIBBIT--FREE BANKINGFREE BANKING FOR ALLFOR ALLRIBA/RIBBITRIBA/RIBBIT FREE BANKINGFREE BANKING FOR ALLFOR ALLLiving The Real RibaLiving The Real Riba--Free Life StyleFree Life Style

FORMFORM versus versus SUBSTANCESUBSTANCE

RF Banking RF Banking ((Riba/Riba/RibbitRibbit--Free “Islamic”)Free “Islamic”)::How a Wonderful How a Wonderful JudeoJudeo--ChristianChristian--Islamic Islamic Law &Law &Life Style were Reduced to A Set of Documents andLife Style were Reduced to A Set of Documents andPaper Transactions to Make It Look “ Compliant.”Paper Transactions to Make It Look “ Compliant.”

The RF Movement Needs to Get Back on The RF Movement Needs to Get Back on TrackTrack

RF Banking (RF Banking (Riba/Riba/RibbitRibbit--Free BankingFree Banking))

The RF Industry in the 20th CenturyThe Approach and Mechanics

CHANGE The Local Laws and Contracts:CHANGE The Local Laws and Contracts:Take Existing Products and Services and CHANGEContracts to Make them Look Islamic…Financial Engineering.

Lost In The Translation!Lost In The Translation!“LIEN” was Mistranslated as “RAHNRAHN” (Pawn) and Not as “I li d C O hi ” f th U f t d Titl !“Implied Co-Ownership” of the Usufruct and Title!

Financial Sukuk

Bridge Investment

Investment ManagerHolding Company

Bridge Financier

Financing Facility

Investment Management Agreement

Project Manager Appointment

I ti ’

License Land Mortgages

Istisna’a

IjāraPurchase Understanding

Sale UnderstandingEquityProject

Manage

Project Company

Issuer

Trust-Construction

Contracts

Sale Agency Agreement

Sale Understanding

Collateral Security

Manager

S l A t Trust-Agency

AgreementSukuk

Certificates

Contracts

SukukContractors Retail

Purchasers S k kRetail

R t il

Sale Agreements Leases

u uHolders

Purchasers Lessees

SukukHoldersSukuk

Holders

Purchasers Lessees

Retail Purchasers

Lessees

Riba /Ribbit – Free Banking in the USAgThe Laws of the Land and The Shari’aa

The RF Industry: CHALLENGES

– How To Present A True Economic Tangible ADDED VALUE That Can Be Demonstrated

– How To Do Away with:C li t d St t Th t L d t Di t dComplicated Structures That Lead to Disputes and Lengthy Trials.Sophisticated Ruses, Circumventions and Financial Engineering That Create Disputes and Government Suspicions

Riba/Ribbit – Free Banking in the USAgThe Laws of the Land and The Shari’aa

WHAT TO DO?WE MUST AGREE ON DEFINITION OF RIBA…It Is The Act Of Renting Money!

WE MUST CHANGE OUR APPROACH

WE MUST STRENGTHEN THE FOUNDATION OF THE “RF Finance’ STRUCTURE

The RF Industry in the 21st Centuryy yA Tested Superior New Approach

Respect the Body of Human Experience in Finance…It is Judeo-Christian-Islamic Finance for PEOPLE of ALL FAITHS!Start with What is Available, Understand It and

dd h ( i bi ) hAdd to It: The LIEN (Imtiaz in Arabic) vs. the PAWN (Rahn in Arabic.)D t t th Add d V l f U i RFDemonstrate the Added Value of Using RF:– Marking to Market

Commodity Indexation– Commodity Indexation

Use Existing Simple Contracts with Additions

The RF Industry in the 21st CenturyA Tested Superior New Approach

Dispute Settlement:– The System of Arbitration has Resolved Many Business

Disputes in the US Using the Principles of the FaithDisputes in the US Using the Principles of the Faith (Jews, Christians and Muslims.)

Bank Regulators and Auditors:– A Great Human Achievement for Cleansing the System

Errors and Improving it.– We Simply Need to Add A Jurisprudence (Shari’aa)

Examination to the Regulators’ Safety and SoundnessExamination to the Regulators Safety and Soundness Annual Examination.

LARIBA LARIBA –– RF BankingRF BankingWE DO NOT RENT MONEY WE INVEST IN YOUWE DO NOT RENT MONEY WE INVEST IN YOUWE DO NOT RENT MONEY ; WE INVEST IN YOUWE DO NOT RENT MONEY ; WE INVEST IN YOUWe Answer To A Higher AuthorityWe Answer To A Higher Authority -- GOD!GOD!

WE INVITE YOU TO LIVE WITHOUT RIBA!!WE INVITE YOU TO LIVE WITHOUT RIBA!!

Dr. Yahia AbdulDr. Yahia Abdul--RahmanRahman

YARAHMAN@MSN.comYARAHMAN@MSN.com@@

626 626 -- 818 818 -- 08550855 OrOr 626 626 –– 449 449 –– 4401 X4401 X-- OO

THANK YOUTHANK YOU QUESTIONS PLEASE!QUESTIONS PLEASE!THANK YOU THANK YOU -- QUESTIONS PLEASE!QUESTIONS PLEASE!www.LARIBA.comwww.LARIBA.com