Page 192 - Bank Muamalat_AR24

190 BANK MUAMALAT MALAYSIA BERHAD

DIRECTORS’ REPORT

DISCLOSURE OF SHARIAH COMMITTEE (CONT’D.)

(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 lnstitusi 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 regards 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 the SC’s decision or advice to be submitted to the 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.
(i) In the event that the SC delegates any of its responsibilities to any persons or functions:-

(i) The Bank must ensure that the mandate, areas of delegated authority and operating procedures are set out clearly in
the SC’s charter and the Bank’s internal policies;

(ii) The Bank must establish reporting arrangements to keep the SC informed of the work, key deliberations and decisions
on the delegated matters; and
(iii) The SC must remain fully accountable for the decisions and any ensuing implications arising from the delegated
responsibility.
(j) To exercise objectivity in coming up with the SC judgment and be free from associations or circumstances that may
impair the exercise of professional objectivity. In fulfilling the responsibility, a SC member must ensure that the judgement
in arriving at a Shariah decision or advice is not affected by other professional commitments.
(k) To devote sufficient time to prepare for and attend SC meetings.

(I) To ensure consistency in providing the SC views and must not act in manner that would undermine the rulings of the SAC
or any decisions of the SC that they represent.
(m) To disclose the nature and extent of the SC interest that constitutes or gives rise to a conflict or potential conflict of interest
upon the appointment, re-appointment or as soon as there is any changes in SC circumstances that may affect SC status.
(n) To continuously develop a reasonable understanding of the business and operations of the Bank and keep abreast
with relevant market and regulatory developments. The chairman of the SC must lead efforts to manage the SC’s
developmental plans.