Page 165 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
GOVERNANCE

all aspects of the products or activities are in xvii. The Shariah Committee shall maintain the confidentiality
accordance with Shariah requirements as set out of the Bank’s internal information and shall
in the relevant securities laws and guidelines responsible for the safe guarding of confidential
issued by the SCM; information. He or she should maintain all information
in strict confidence, except when disclosure is
b. ensure that the applicable Shariah rulings,
authorised by the Bank or required by law.
principles and concepts endorsed by the SAC
are complied with; and xviii. The Shariah Committee shall ensure the quality and
consistency of the Shariah decisions.
c. apply ijtihad (intellectual reasoning) to ensure
all aspects relating to the Islamic capital market
COMPOSITION OF SHARIAH COMMITTEE
products and the Islamic capital market activity
are in compliance with Shariah, in the absence of
According to Policy Document on Shariah Governance
any Shariah rulings, principles and concepts
(PDSG), the composition of Shariah Committee at minimum
endorsed by the SAC.
must comprise of at least five (5) members and the member
must not accept any appointment in more than one licensed
ix. Provide Written Shariah Opinions
Islamic bank, one licensed takaful operator and one
The Shariah Committee is required to provide written prescribed institution. Furthermore, a Shariah Committee
Shariah opinions in circumstances where the Bank member must not serve the same Islamic Financial
make reference to the SAC for further deliberation, Institutions (IFI) for more than nine (9) years with effective
st
or where the Bank submits applications to the Bank from 1 April 2023. For this year, the Bank has appointed
for new product approval. two (2) new members and subsequently appointed a new
Chairman after the previous Chairman has reached the
x. Provide the Bank with guidelines and advice on religious maximum period of appointment as set by BNM.
matters to ensure that the Bank’s overall activities are in
line with Shariah. As at December, Shariah Committee of Bank Muamalat
comprises of six (6) members where they are based on
xi. Make decisions on matters arising from existing and future renewal as per guided under PDSG. A brief profile of
activities of the Bank which have religious repercussions. each member of the Shariah Committee is presented on
pages 134 to 137 of this Annual Report.
xii. Report to the shareholders and the depositors that
all the Bank’s activities are in accordance with Shariah.
APPOINTMENT/REAPPOINTMENT OF SHARIAH
xiii. Provide Shariah advisory and consultancy services in COMMITTEE
all matters relating to Bank’s products, transactions
and activities as well as other businesses involving The appointment/reappointment of the Shariah Committee
the Bank. members and Chairman of the Shariah Committee is subject
to assessment and evaluation based on necessary conditions
xiv. Scrutinise and endorse the annual financial report of the made by the Bank and met all requirements specified
Bank. in the policies issued by BNM.
xv. Provide training to the staff as well as notes or relevant The Board shall, upon recommendation of its Nomination
materials for their reference. Committee, nominate the appointment of the members
of the Shariah Committee.
xvi. Represent the Bank or to attend any meetings with
the SAC or other relevant bodies concerning any Further written approval and endorsement from Bank Negara
Shariah issues relating to the Bank. Malaysia must be obtained after approval from the Board
at least three (3) months before it expects a proposed
candidate to assume his/her responsibilities. In the case of
reappointment, the application must be submitted three
(3) months prior to the expiry of the Shariah Committee
member’s tenure.

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