Page 180 - Bank Muamalat_AR24

178 BANK MUAMALAT MALAYSIA BERHAD

SHARIAH COMMITTEE REPORT

The Shariah Committee was established in accordance with b. the product manual, marketing advertisements,
the requirements of the Islamic Financial Services Act 2013, sales illustrations and brochures used to describe
which prescribed the setting up a Shariah body to ensure the the product.
Bank’s aims and operations, business, affairs and activities in
accordance with Shariah principles. Members of the Shariah v. Assess work carried out by Shariah review and Shariah
Committee are scholars renowned for their knowledge and audit
experience in Shariah and Fiqh Muamalat.
To assess the work carried out by Shariah review and
The Shariah Committee is guided by its Terms of Reference Shariah audit in order to ensure compliance with
which sets out amongst others, the primary duties and Shariah matters which forms part of their duties in
responsibilities of the Shariah Committee, the authority and providing their assessment of Shariah compliance and
conduct of the Shariah Committee meetings. The Terms of assurance information in the annual report.
reference are governed by the Central Bank Act 2009, Islamic
Financial Services Act 2013 (IFSA), Guidelines on Islamic vi. Assist related parties on Shariah matters
Capital Markets Product and Services and the Policy Document The related parties of the Bank such as its legal counsel,
on Shariah Governance (including any amendment that will auditor or consultant may seek advice on Shariah matters
be made from time to time) (Laws and Regulations). from the Shariah Committee and the Shariah Committee
Duties, Responsibilities & Accountability of the Shariah is expected to provide the necessary assistance to the
Committee are as follows: requesting party.

i. Responsibility and accountability vii. Shariah Advisory Council, Bank Negara Malaysia
The Shariah Committee may advise the Bank to consult
The Shariah Committee is expected to understand that
in the course of discharging the duties and responsibilities the Shariah Advisory Council of Bank Negara Malaysia
as a Shariah Committee member must be in accordance (SAC) on Shariah matters that could not be resolved.
with Laws and Regulations in respect of duties and In cases where there are uncertainties and differences
obligations of the Shariah Committee member, and of opinions, the Bank may seek advice and refer
responsible and accountable for all Shariah decisions, for a ruling from the SAC. The request for advice shall
opinions and views provided by them. be communicated through the Secretariat of the SAC.

ii. Advise to the Board and Bank including the Bank’s Members of the Shariah Committee must not act in a
subsidiaries manner that would undermine the rulings and decisions
made by the SAC or the committee they represent.
The Shariah Committee is expected to advise the Board,
Management, including the Bank’s subsidiaries and They are required to respect and observe the published
provide input to the Bank on Shariah matters in order Shariah rulings issued by the SAC and shall not go against
for the Bank to comply with Shariah principles at all the decisions of the committee that they represent
times. in public.
iii. Endorse Shariah policies and procedures In cases of disputes and court proceedings relating to
Islamic financial business or any Shariah issues arising
The Shariah Committee is expected to endorse Shariah from the Bank’s business operations, both the court
policies and procedures prepared by the Bank and and the arbitrator shall take into consideration the
to ensure that the contents do not contain any elements published rulings of the SAC or refer such issues to
which are not in line with Shariah. the SAC for its ruling. Any ruling made by the SAC arising
from a reference made shall be binding on the Bank and
iv. Endorse and validate relevant documentations the court or the arbitrator.

To ensure that the products of the Bank comply with In the event where the decision given by the Bank’s
Shariah principles, the Shariah Committee must approve: Shariah Committee is different from the ruling given by
the SAC, the rulings of the SAC shall prevail. However,
a. the terms and conditions contained in the the Shariah Committee is allowed to adopt a more
forms, contracts, agreements or other legal stringent Shariah decision.
documentations used in executing the transactions;
and