Bank Islam Integrated Annual Report 2022

CORPORATE GOVERNANCE AND BUSINESS ETHICS Corporate governance and business ethics are essential to maintaining the integrity of our financial systems and to ensure that we are aligned with our values as an Islamic bank. From a business perspective, strong corporate governance practices and ethical operations are key drivers of sustainable growth and long-term success. By adopting best practices in corporate governance, we can ensure that our operations are conducted in a transparent and accountable manner. This helps us to build and maintain trust among our stakeholders, which in turn, creates a positive reputation for BIMB and strengthens our brand. Furthermore, ethical business practices help to prevent the risk of regulatory penalties and legal liabilities, which could damage our financial performance and reputation. Additionally, our customers and other stakeholders rely on us to act with integrity and to conduct our business operations in a responsible and ethical manner. By doing so, we can ensure that we meet the expectations of our stakeholders and protect their interests. Ultimately, this helps us to build stronger relationships with stakeholders and create long-term value that benefits everyone. BIMB’s financial banking systems are founded on outstanding integrity, as reflected in the Group Anti-Bribery & Corruption Policy (GABCP). This policy enforces a zero-tolerance approach towards all forms of bribery and corruption, including kickbacks or any other types of corruption. All employees are required to adhere to the GABCP standards at both the individual and organisational levels. It is explicitly stated that employees are not allowed to offer any form of value, such as gifts, hospitality, or entertainment, with the purpose of improperly obtaining or retaining a personal or business advantage, unless it is allowed by the policy. BIMB has also implemented the T.R.U.S.T. principles under the governance framework, as set out in the Guidelines of Adequate Procedures by the Malaysian government, to further enhance its anti-corruption approach. These principles uphold the highest ethical standards and reflect the bank’s commitment to good corporate governance and ethical business practices. The bank’s strict adherence to these policies and principles is crucial in maintaining its reputation as a trustworthy and ethical financial institution and ensuring stakeholders’ confidence in its operations. The policy also fulfils the requirements for Adequate Procedures under Principle 2: Risk Assessment following the enforcement of Section 17A of MACC Act 2009 on corporate liability. The policy is reviewed annually through a mandatory CRM review, which assesses and validates the efficiency of the controls to ensure that risk action plans are enforced. As of 2022, BIMB’s corruption risk management framework is now referred to as the Group Corruption Risk Management Policy. T.R.U.S.T. PRINCIPLES Principle 1 Principle 2 Principle 3 Principle 4 Principle 5 Top Level Commitment Risk Management Undertake Control Measures Systematic Review, Monitoring and Enforcement Training and Communication For potential corruption cases, BIMB’s Integrity & Governance Department (IGD)’s Special Investigation Unit (SIU) investigates the issue and reports their findings to the Group Chief Compliance Officer for approval. The report is then submitted to a Dedicated Independent Non-Executive Director for approval. If needed, the relevant Law Enforcement Agency will be notified. We believe that promoting ethical business conduct and creating a healthy corporate value of integrity in the banking industry through the TAAT values (Think Customer; Act with Integrity; Advance Beyond and Take Charge) helps enhance the ethical workplace culture throughout the bank’s management. This culture of integrity helps BIMB deliver on its promise of “Assuring Trust. Delivering Value” to its stakeholders. Good Governance Integrated Report 2022 142

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