Page 423 - Bank-Muamalat-Annual-Report-2021

ANNUAL REPORT 2021 421
SUSTAINABILITY STATEMENT OUR GOVERNANCE OUR NUMBERS OTHER INFORMATION

10.0 shArIAh governAnce DIsclosures (conT’D)

Rectification Process of Shariah Non-Compliance Income (“SNCI”) and Unidentified Funds
earning and expenditure Prohibited by shariah
Policy on Management of Shariah Non-Compliant Income was formulated pursuant to the BNM’s Policy Document on
Shariah Governance Framework for IFI, which defines the principles and practices to be applied by the Bank in managing
its SNCI.

SNCI is an income generated from any transaction(s) that breaches the governing Shariah principles and requirements as
determined by the Bank’s SC and/or other Shariah Authorities (SA).

The SA are as follows:
• Shariah Advisory Council of Bank Negara Malaysia.
• Shariah Advisory Council of Securities Commission Malaysia.

• Any other relevant Shariah resolutions and rulings as prescribed and determined by the SC of the Bank from to time.
The amount of SNCI and events decided by SC is as follows:

31 December 2021 31 December 2020
event - 6 Event - 2
nostro interest received - nil Nostro interest received - nil
There were a total of six (6) Shariah non-compliant events recorded and deliberated in SC meeting. The total SNCI arising
from SNCE throughout the year were recorded at RM3.92.
All of the events together with the rectification plans were presented to the Board of Directors and SC and reported to BNM
in accordance with the Shariah non-compliance reporting requirement prescribed by BNM.

Any financial amount reported as SNCI will be utilised to fund approved charitable activities as guided by SC of the Bank.
unidentified fund/shubhah

During the Bank’s daily operations, there are certain funds received by the Bank where the source is not clear or uncertain.
These funds cannot be recognised as income and must be retained in the Maslahah Ammah account. The utilisation of these
funds follows similar procedures set for the SNCI funds.

Example’s of unidentified funds are cash excess identified at teller and automated teller machines (“ATM”), and unidentified
credit balance in the General Ledger.

The total earnings prohibited by Shariah and the unidentified funds during the financial year were recorded at Nil
(31 December 2020: RM408,927).