Page 140 - Bank-Muamalat-Annual-Report-2021

138 BANK MUAMALAT MALAYSIA BERHAD
ABOUT US OUR LEADERSHIP OUR STRATEGY OUR PERFORMANCE

SHARIAH COMMITTEE
STATEMENT

ix. Provide the Bank with guidelines and advice on religious appointed two new Shariah Committee members to replace
matters to ensure that the Bank’s overall activities are in the two earlier members who have exceeded nine (9) years
line with Shariah. tenure.

x. Make decisions on matters arising from existing and future
activities of the Bank which have religious repercussions.
1 SC 0 SC 2 SCs 2 SCs
xi. Report to the shareholders and the depositors that all the >9 years >7-9 years >4-6 years >1-3 years
Bank’s activities are in accordance with Shariah.

xii. Provide Shariah advisory and consultancy services in all
A brief profile of each member of the Shariah Committee is presented
matters relating to the Bank’s products, transactions and on pages 116 to 118 of this Annual Report.
activities as well as other businesses involving the Bank.
xiii. Scrutinise and endorse the annual financial report of the
Bank. APPOINTMENT/REAPPOINTMENT OF SHARIAH
COMMITTEE
xiv. Provide training to the staff as well as notes or relevant
materials for their reference. The appointment/reappointment of the Shariah Committee
members and Chairman of the Shariah Committee is subject
xv. Represent the Bank or attend any meetings with the SAC to assessment and evaluation based on necessary conditions
or other relevant bodies concerning any Shariah issues made by the Bank and met all requirements specified in the
relating to the Bank. policies issued by BNM.
xvi. The Shariah Committee shall maintain the confidentiality The Board shall, upon recommendation of the BNRC, nominate
of the Bank's internal information and shall be responsible the appointment of the members of the Shariah Committee.
for the safeguarding of confidential information. He or she
should maintain all information in strict confidence, except Further written approval and endorsement from Bank Negara
when disclosure is authorised by the Bank or required by Malaysia must be obtained after approval from the Board at
law. least three (3) months before it expects a proposed candidate
to assume his/her responsibilities. In the case of reappointment,
xvii. The Shariah Committee shall ensure the quality and the application must be submitted three (3) months prior to the
consistency of the Shariah decisions. expiry of the Shariah Committee member’s tenure.

COMPOSITION OF SHARIAH COMMITTEE RESIGNATION AND TERMINATION OF
THE SHARIAH COMMITTEE
According to the PDSG, the composition of the Shariah
Committee at minimum must comprise of at least five members Where a Shariah Committee member resigns or is disqualified
and the member must not accept any appointment in more pursuant to the relevant paragraphs in PDSG and Sections
than one licenced Islamic bank, one licenced takaful operator 33(2) and 34(1) of the IFSA 2013, impose obligations on the
and one prescribed institution. Furthermore, a member of Bank and the Shariah Committee member to notify the BNM
the Shariah Committee must not serve the same Islamic of that fact and its reason immediately or in any cases no later
Financial Institutions (“IFI”) for more than nine years starting than fourteen (14) days of such circumstances.
1 April 2023. Therefore the Bank has exercised the plan to
appoint new members as replacement. For the purpose of the application for termination, the Bank
must provide justifications as well as assessment on the
Currently, the Shariah Committee of Bank Muamalat performance of such member to BNM.
comprises five members; where they are based on renewal
up to three years term. For year 2021, Bank Muamalat has