Page 139 - Bank-Muamalat-AR2020

137
Governance
Our Performance Sustainability Statement Our Governance Our Numbers Other Information

SHARIAH COMMITTEE
STATEMENT

The Shariah Committee was established in accordance with iv. Endorse and validate relevant documentations
the requirements of the Islamic Financial Services Act 2013,
which prescribed the setting up of a Shariah body to ensure To ensure that the products of the Bank comply
the Bank conducts its affairs in accordance with Shariah with Shariah principles, the Shariah Committee must
principles. Members of the Shariah Committee are scholars approve:
renowned for their knowledge and experience in Shariah and a. the terms and conditions contained in the forms,
Fiqh Muamalat.
contracts, agreements or other legal documentations
The Shariah Committee is guided by its Terms of Reference used in executing the transactions; and
which sets out amongst others, the primary duties and b. the product manual, marketing advertisements,
responsibilities of the Shariah Committee, the authority and sales illustrations and brochures used to describe
conduct of the Shariah Committee meetings. The Terms the product.
of Reference are governed by the Central Bank Act 2009,
Islamic Financial Services Act 2013 (“IFSA”) and the Policy v. Assess work carried out by Shariah review and Shariah
Document on Shariah Governance (“Laws and Regulations”). audit

Duties, Responsibilities & Accountability of the Shariah To assess the work carried out by Shariah review
Committee are as follows: and Shariah audit in order to ensure compliance with
Shariah matters which forms part of their duties in
i. Responsibility and accountability
providing their assessment of Shariah compliance and
The Shariah Committee is expected to understand assurance information in the annual report.
that in the course of discharging the duties and vi. Assist related parties on Shariah matters
responsibilities as a Shariah Committee, the members
must be in accordance with Laws and Regulations The related parties of the Bank such as its legal
in respect of duties and obligations of the Shariah counsel, auditor or consultant may seek advice on
Committee members, and responsible and accountable Shariah matters from the Shariah Committee and the
for all Shariah decisions, opinions and views provided Shariah Committee is expected to provide the necessary
by them. assistance to the requesting party.

ii. Advise to the Board and the Bank including the Bank’s vii. Shariah Advisory Council, Bank Negara Malaysia
subsidiaries
The Shariah Committee may advise the Bank to consult
The Shariah Committee is expected to advise the Board the Shariah Advisory Council of Bank Negara Malaysia
and the Management, including the Bank’s subsidiaries, (“SAC”) on Shariah matters that could not be resolved.
and provide input to the Bank on Shariah matters in
order for the Bank to comply with Shariah principles at viii. Provide Written Shariah Opinions
all times.
The Shariah Committee is required to provide written
iii. Endorse Shariah policies and procedures Shariah opinions in circumstances where the Bank
makes reference to the SAC for further deliberation, or
The Shariah Committee is expected to endorse Shariah where the Bank submits applications to the Bank for
policies and procedures prepared by the Bank and to new product approval.
ensure that the contents do not contain any elements
which are not in line with Shariah.