Page 163 - Bank-Muamalat-AR2020

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Our Performance Sustainability Statement Governance Our Numbers Other Information

DISCLOSurE OF ShArIAh COMMITTEE
The Bank’s business activities are required to be in full compliance with the Shariah requirements, as governed and guided by the
Shariah Committee (“SC”) consisting of a minimum of five (5) members appointed by the Board for a specified term. The duties
and responsibilities of the Shariah Committee are prescribed by the Shariah Governance Policy Document issued by BNM. The key
responsibilities of the Shariah Committee are as follows:

(a) To have a charter that sets out the mandate, responsibilities and procedures of the SC including matters reserved for its decision
or advice.

(b) To provide objective and sound advice to the Bank to ensure that its aims and operations, business, affairs and activities are in
compliance with Shariah. This includes:
(i) to provide a decision or advice to the Bank on the application of any rulings of the Shariah Advisory Council (“SAC”) or
standards on Shariah matters that are applicable to the operations, business, affairs and activities of the Bank;
(ii) to provide a decision or advice on matters which require a reference to be made to the SAC;

(iii) to provide a decision or advice on the operations, business, affairs and activities of the Bank which may trigger a Shariah
non-compliance event;
(iv) to deliberate and affirm a Shariah non-compliance finding by any relevant functions; and

(v) to endorse a rectification.
(c) To be accountable for the quality, accuracy and soundness of its own decision or advice.

(d) To establish a robust methodology to guide its decision-making process. The SC must take into account relevant business and
risk practices in arriving at a decision or advice.
(e) Where the SC has reason to believe that any Shariah issues or matter may affect the safety and soundness of the Bank, the SC
must immediately update the Board of Directors (“BOD”) on such matter.
(f) In cases where the SAC has not made any rulings on a particular matter or the SC is not able to arrive at a decision or advice,
the Bank shall refer to the SAC for a ruling in accordance with Manual Rujukan Institusi Kewangan Islam kepada Majlis Penasihat
Syariah. Any requests for a ruling or advice shall be communicated through the Secretariat of the SAC.

(g) In the event where the SC decides or advises to place additional restrictions on the operations, business, affairs and activities of
the Bank in applying the SAC rulings, the Bank must:
(i) document the deliberations and justifications of the SC decision or advice;

(ii) ascertain the BOD’s views on the decision or advice made by the SC with regards to the SAC ruling; and
(iii) Ensure immediate notification to the BNM of such decision or advice.

(h) The Bank shall ensure that any records of SC’s decision or advice to be submitted to BNM, including a rectification plan to
address a Shariah non-compliance event (under section 28(3) of the Islamic Financial Services Act (“IFSA”) 2013, is supported
with key deliberations, rationale and any significant concerns or dissenting views to the decision or advice.