Bank Islam Integrated Annual Report 2020

‘Salam Sejahtera’ In carrying out the roles and responsibilities of the Shariah Supervisory Council (“SSC”) as prescribed in the Shariah Governance Policy Document (“SGPD”) issued by Bank Negara Malaysia (“BNM”) and in compliance with our letter of appointment, we hereby submit our report for the financial year ended 31 December 2020. The Bank’s Management is responsible to ensure that its conducts and businesses are in accordance with the Shariah rules and principles, and it is our responsibility to form an independent opinion based on our review on the conduct and businesses of the Bank and to produce this report. We had eight (8) meetings during the financial year in which we reviewed, inter alia, products, transactions, services, processes and documents of the Bank. In performing our roles and responsibilities, we had obtained all the information and explanations which we considered necessary in providing us with sufficient evidences to give reasonable assurance that the Bank has complied with the Shariah rules and principles. At the management level, the Head of Shariah (cum Secretary of the SSC), who functionally reports to the SSC, oversees the conduct and effectiveness of Shariah Division’s functions that carry out the roles and responsibilities related to Shariah secretariat, research and advisory. The Bank’s Shariah governance is further substantiated by Shariah Risk Management, Shariah Review and Shariah Audit that resides in the Risk Management Division, Compliance Division, and Internal Audit Division, and reports directly to the Chief Risk Officer, Chief Compliance Officer, and Chief Internal Auditor respectively. The following are the major developments that took place during the financial year which reside under our purview: APPROVALS To ensure smoothness and timely execution of our business operation, we empower the Head of Shariah to approve a non- substantial variation of Shariah related matters, and the approvals are reported to us periodically for notification. At the same time, the Head of Shariah or his representative is also sitting as a member in the following committees to advise the Bank on matters relating Shariah rules and principles: i) Management Committee; ii) Sadaqa House and Zakat Committee; iii) Management Risk Control Committee; iv) Operational Risk Control Committee; v) Underwriting and Investment Committee; vi) Product Development Oversight Steering Committee; vii) Financing Committee A; viii) Financing Committee B; and ix) Tender Evaluation Committee for Vendor Management. 180 Financ ial Statement s Accountabi l i t y Addi t ional Informat ion REPORT OF THE SHARIAH SUPERVISORY COUNCIL