Page 139 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 137
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

SHARIAH COMMITTEE

STATEMENT

The Shariah Committee was established in accordance with the iv. Endorse and validate relevant documentations
requirements of the IFSA 2013, which prescribed the setting
To ensure that the products of the Bank comply with
up of a Shariah body to ensure the Bank conducts its affairs
Shariah principles, the Shariah Committee must approve:
in accordance with Shariah principles. Members of the Shariah
Committee are scholars renowned for their knowledge and
a. the terms and conditions contained in the forms,
experience in Shariah and Fiqh Muamalat.
contracts, agreements or other legal documentations
used in executing the transactions; and
The Shariah Committee is guided by its Terms of Reference
which sets out amongst others, the primary duties and
b. the product manual, marketing advertisements, sales
responsibilities of the Shariah Committee, the authority and
illustrations and brochures used to describe the
conduct of the Shariah Committee meetings. The Terms
product.
of Reference are governed by the Central Bank Act 2009,
IFSA 2013 and the Policy Document on Shariah Governance v. Assess work carried out by Shariah review and Shariah
(“Laws and Regulations”). audit
Duties, Responsibilities & Accountability of the Shariah To assess the work carried out by Shariah review and
Committee are as follows: Shariah audit in order to ensure compliance with Shariah
matters which forms part of their duties in providing
i. Responsibility and accountability
their assessment of Shariah compliance and assurance
information in the Annual Report.
The Shariah Committee is expected to understand that in
the course of discharging the duties and responsibilities
vi. Assist related parties on Shariah matters
as a Shariah Committee, the members must be in
accordance with Laws and Regulations in respect of duties The related parties of the Bank such as its legal counsel,
and obligations of the Shariah Committee members, and auditor or consultant may seek advice on Shariah matters
responsible and accountable for all Shariah decisions, from the Shariah Committee and the Shariah Committee
opinions and views provided by them. is expected to provide the necessary assistance to the
requesting party.
ii. Advise to the Board and the Bank including the Bank’s
subsidiaries vii. Shariah Advisory Council, Bank Negara Malaysia

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