Page 164 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

SHARIAH

COMMITTEE

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 a Shariah body to ensure To ensure that the products of the Bank comply with
the Bank conducts its affairs in accordance with Shariah Shariah principles, the Shariah Committee must approve:
principles. Members of the Shariah Committee are scholars
a. the terms and conditions contained in the
renowned for their knowledge and experience in Shariah
forms, contracts, agreements or other legal
and Fiqh Muamalat.
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,
responsibilities of the Shariah Committee, the authority and
sales illustrations and brochures used to
conduct of the Shariah Committee meetings. The Terms of
describe the product.
reference are governed by the Central Bank Act 2009,
Islamic Financial Services Act 2013 (IFSA), Guidelines on v. Assess work carried out by Shariah review and Shariah
Islamic Capital Markets Product and Services and the audit
Policy Document on Shariah Governance (including any
amendment that will be made from time to time) (Laws and To assess the work carried out by Shariah review and
Regulations). Shariah audit in order to ensure compliance with
Shariah matters which forms part of their duties in
Duties, Responsibilities & Accountability of the Shariah providing their assessment of Shariah compliance
Committee are as follows: and assurance information in the annual report.

i. Responsibility and accountability vi. Assist related parties on Shariah matters
The Shariah Committee is expected to understand The related parties of the Bank such as its legal
that in the course of discharging the duties and counsel, auditor or consultant may seek advice on
responsibilities as a Shariah Committee member must Shariah matters from the Shariah Committee and
be in accordance with Laws and Regulations in respect the Shariah Committee is expected to provide the
of duties and obligations of the Shariah Committee necessary assistance to the requesting party.
member, and responsible and accountable for all
Shariah decisions, opinions and views provided vii. Shariah Advisory Council, Bank Negara Malaysia
by them.
The Shariah Committee may advise the Bank to consult
ii. Advise to the Board and Bank including the Bank’s the Shariah Advisory Council of Bank Negara Malaysia
subsidiaries (SAC) on Shariah matters that could not be resolved.
The Shariah Committee is expected to advise the viii. Shariah Advisory Council, Securities Commission Malaysia
Board, Management including the Bank’s subsidiaries
Shariah Committee members are registered with
and provide input to the Bank on Shariah matters in
Securities Commission Malaysia (SCM) as individual
order for the Bank to comply with Shariah principles
Shariah Adviser a Shariah adviser must, among others:
at all times.
a. provide Shariah expertise and advice on Shariah
iii. Endorse Shariah policies and procedures
matters in relation to the Islamic capital market
The Shariah Committee is expected to endorse Shariah products or the Islamic capital market service
policies and procedures prepared by the Bank and including matters relating to documentation (which
to ensure that the contents do not contain any includes the deed and prospectus), structure,
elements which are not in line with Shariah. feature, investment instruments and ensure that

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