Composition The SSC of BIMB consists of six (6) members during the financial year under review up to 31 December 2022, in compliance with the requirement of paragraph 13.2 of the Shariah Governance Policy Document (SGPD) which requires an Islamic financial institution to have at least five (5) members. Members of the SSC have diverse backgrounds, experience and knowledge. Each SSC member is an expert in his/her respective specialised field such as Islamic law, Islamic banking, capital market, takaful, waqf, zakat, fatwa, halal industry etc. Their qualification in Islamic jurisprudence (usul al-fiqh) and Islamic commercial laws (fiqh al-mu’amalat), expertise and vast experience in the academia as well as in the industry support the depth and breadth of the SSC deliberations on Shariah related matters. Duties and Responsibilities In addition to the Board’s oversight accountability on Shariah compliance, the SSC was established to perform an oversight role on all Shariah matters and to advise BIMB in ensuring its business affairs and activities comply with Shariah. The SSC’s primary duties and responsibilities are outlined in the Charter and Terms of Reference which are available on www.bankislam.com. Authority The SSC has the authority to do the following: Decide on Shariah related matters referred to the SSC by taking into consideration of the published rulings of the Shariah Advisory Council (SAC) of BNM. In the event where the decision given by the SSC is different from the ruling given by the SAC, the rulings of the SAC shall prevail. However, the SSC is allowed to adopt a more stringent Shariah decision; Decide on Shariah related matters referred to the SSC without undue influence that would hamper the SSC from exercising objective judgment in deliberating issues brought before it; Ensure that decisions made by the SSC are duly observed and implemented by BIMB. Decisions made by the SSC should not be set aside or modified without its consent; Access to accurate, timely and complete information from the Management including but not limited to all relevant records, transactions, or manuals as required by the SSC in performing its duties. If the information provided is insufficient, the SSC may request for additional information which shall be duly provided by BIMB; and Inform the Board of any case that the SSC has reason to believe that BIMB has been carrying on Shariah noncompliant activities and to recommend suitable measures to rectify the situation. In cases where Shariah noncompliant activities are not effectively or adequately addressed or no rectification measures are made by BIMB, the SSC shall inform BNM of the fact. In this case, the SSC will not be regarded as breaching the confidentiality and secrecy code if the confidential information is disclosed to BNM in good faith. Code of Conduct In accordance with its Code of Conduct, SSC members are expected to possess good character, competence, diligence and capability of making sound judgment. To ensure the quality and consistency of the decisions, the SSC has formulated the Methodology and Means of Decision Making to arrive to a decision on a given issue by applying the usul fiqh discipline and making reference to Shariah standards, fatwa and resolutions of Shariah authority councils and fiqh academies. It also enables the SSC and BIMB to review previous decisions at the request of BIMB or on its own initiative. Responsibilities of BIMB Towards Shariah Compliance The Management works with the SSC to ensure that all business activities, products, services and operations of BIMB are in compliance with Shariah rules and principles. While the SSC is responsible for forming and expressing decisions on BIMB’s compliance with Shariah, the ultimate responsibility for compliance rests with the Management. Therefore, it is the responsibility of BIMB to perform including but not limited to the following: establish a management structure and reporting arrangement that provides a clear scope of accountability between the business lines and the internal control functions that are involved in managing Shariah noncompliance risks, including the accountability of the senior officer leading Shariah related functions; implement effective Shariah governance policies, procedures and practices; Accountability Bank Islam Malaysia Berhad 197 01 05 03 07 02 06 09 04 08
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