Page 364 - Bank-Muamalat_Annual-Report-2023

BANK MUAMALAT MALAYSIA BERHAD

NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2023 (18 JAMADIL AKHIR 1445H)

53. SHARIAH DISCLOSURES (CONT’D.)
(a) Shariah governance (cont’d.)

Rectification Process of Shariah Non-Compliance Income (“SNCI”) and Unidentified Funds
Policy on Management of Shariah Non-Compliance Income was formulated pursuant to the Shariah Governance
Policy Document, which defines the principles and practices to be applied by the Bank in managing its SNCI.

SNCI is an income generated from any transactions that breaches the governing Shariah principles and requirements as
determined by the Group’s and 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 time
to time.
(i) Shariah non-compliance income and events
No. of event RM

2023
Shariah non-compliance events/income during the year 2 150

2022
Shariah non-compliance events/income during the year 1 -

Any reported SNCI will be utilised to fund charitable activities as guided by SC of the Bank.

(ii) Unidentified fund/earning prohibited by Shariah
During the Group’s and the Bank’s daily operations, there are certain funds received by the Group and
the Bank where the source is not clear or uncertain, and/or prohibited by Shariah. These funds are therefore
not recognised as income and are retained in the Maslahah Ammah account. The utilisation of the funds
follow the similar procedures set for the SNCI funds.

Examples of unidentified funds are cash excess discovered at branch counter and automated teller machines
(“ATM”), and unidentified funds, whilst earning prohibited by Shariah were interest income derived from
Nostro accounts.

2023 2022
RM’000 RM’000

At 1 January 431 559

Sources of charity funds
Unidentified fund/earning prohibited by Shariah, during the year -* 70

Uses of charity funds
Contribution to non-profit organisation (417) (198)
Undistributed charity funds at 31 December 14 431

* Represent RM150

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