Page 187 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

DISCLOSURE OF SHARIAH COMMITTEE
The Bank’s business activities are required to be in full compliance with the Shariah requirements, as governed and guided by
the Shariah Committee (“SC”). The duties and responsibilities of the Shariah Committee are prescribed by the Shariah
Governance Policy Document (“SGPD”) issued by Bank Negara Malaysia (“BNM”). The key responsibilities of the Shariah
Committee are as follows:

(a) To have a charter that sets out the mandate, responsibilities and procedures of the SC including matters reserved for its
decision or advice.

(b) To provide objective and sound advice to the Bank to ensure that its aims and operations, business, affairs and activities are
in compliance with Shariah. This includes:
(i) to provide a decision or advice to the Bank on the application of any rulings of the Shariah Advisory Council (“SAC”)
or standards on Shariah matters that are applicable to the operations, business, affairs and activities of the Bank;
(ii) to provide a decision or advice on matters which require a reference to be made to the SAC;

(iii) to provide a decision or advice on the operations, business, affairs and activities of the Bank which may trigger a Shariah
non-compliance event;
(iv) to deliberate and affirm any Shariah non-compliance finding by any relevant functions; and

(v) to endorse rectification measure to address any Shariah non-compliance event.
(c) To be accountable for the quality, accuracy and soundness of its own decision or advice.

(d) To establish a robust methodology to guide its decision-making process. The SC must take into account relevant business and
risk practices in arriving at a decision or advice.

(e) Where the SC has reason to believe that any Shariah issues or matter may affect the safety and soundness of the Bank,
the SC must immediately update the Board of Directors (“BOD”) on such matter.
(f) In cases where the SAC has not made any rulings on a particular matter or the SC is not able to arrive at a decision or advice,
the Bank shall refer to the SAC for a ruling in accordance with Manual Rujukan Institusi Kewangan Islam kepada Majlis
Penasihat Syariah. Any requests for a ruling or advice shall be communicated through the Secretariat of the SAC.

(g) In the event where the SC decides or advises to place additional restrictions on the operations, business, affairs and
activities of the Bank in applying the SAC rulings, the Bank must:
(i) document the deliberations and justifications of the SC decision or advice;

(ii) ascertain the BOD’s views on the decision or advice made by the SC with regard to the SAC ruling; and
(iii) ensure immediate notification to the BNM of such decision or advice.

(h) The Bank shall ensure that any records of SC’s decision or advice to be submitted to BNM, including a rectification plan
to address a Shariah non-compliance event (under section 28(3) of the Islamic Financial Services Act (“IFSA”) 2013),
is supported with key deliberations, rationale and any significant concerns or dissenting views to the decision or advice.

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