Page 439 - Bank-Muamalat_Annual-Report-2023

ANNUAL REPORT 2023
OUR NUMBERS

10.0 SHARIAH GOVERNANCE DISCLOSURES (CONT’D)
Rectification Process of Shariah Non-Compliance Income (“SNCI”) and Unidentified Funds

Earning Prohibited by Shariah
The Bank defines the principles for managing Shariah Non-Compliance Income (“SNCI”) in its Policy on Shariah
Risk Management while the operational practices and procedures to be applied in managing SNCI are outlined in the
Guidelines on Shariah Risk Management.
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 2023 31 December 2022

Event - 2 Event - 1
SNCI - RM150 SNCI - nil

The SNC event together with the rectification plans were presented and deliberated at the SC and Board of Directors
meetings and reported to BNM in accordance with the SNC 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 and other 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 credit balances, whilst earning prohibited by Shariah were interest income derived from Nostro accounts.

The total earnings prohibited by Shariah and the unidentified funds during the financial year were recorded at RM173
(31 December 2022: RM70,356).

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