Authority The SSC has the authority to do the following: I. 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 differs from the ruling by the SAC, the rulings of the SAC shall prevail. However, the SSC is allowed to adopt a more stringent Shariah decision; II. Decide on Shariah related matters referred to the SSC without undue influence that would hamper the SSC from exercising objective judgement in deliberating issues brought before them; III. Ensure that decisions made by the SSC are duly observed and implemented by the Bank. Decisions made by the SSC should not be set aside or modified without its consent; IV. Inform the Board of any case that the SSC has reason to believe that the Bank has been carrying on Shariah non-compliant activities and to recommend suitable measures to rectify the situation. In cases where Shariah non-compliant activities are not effectively or adequately addressed or no rectification measures are made by Bank Islam, 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, the SSC members are expected to possess good character, competence, diligence and capability of making sound judgement. 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 the Bank to review previous decisions at the request of Bank Islam or its own initiative. Key Matters Deliberated By The SSC The areas deliberated by the Board during FY2024 comprised 113 agenda items. The key focus areas are as follows: ✓ Shariah Compliance, Risk Management & Audit: Focuses on Shariah compliance, guidelines, policies, risk management, and rectification of Shariah non-compliance events. ✓ Strategy, Financials, and Business Performance: Covers financial statements, product reviews, marketing guidelines, adoption of Fatwa, and approval of new products and practices. ✓ Business Zakat & Social Finance: Relates to Business Zakat approvals, guidelines, allocations to Zakat authorities, and utilisation of Zakat funds for social finance programs. Appointment and Re-Appointment of Members The Board, on the recommendation of the BNRC, decides on the appointment and re-appointment of the SSC members, subject to BNM’s written approval. The members are selected from candidates who attained qualifications in Islamic jurisprudence (usul al-fiqh) and Islamic commercial laws (fiqh al-mu’amalat), with expertise and vast experience in the academia as well as in the industry to facilitate indepth deliberations on Shariah related matters. The Board ensures that the SSC members have the necessary credibility, integrity and calibre and the required skills and knowledge. The appointment and re-appointment of the SSC members is subject to the Fit and Proper Criteria adopted by Bank Islam as required by paragraph 12 of the SGPD and Fit and Proper policy document issued by BNM. SSC Meetings Summary of SSC meetings attendance and time spent in 2024 are set out below: No. of meetings 7 meetings Attendance 100% Total Meeting Hours 29.4 hours Average Time Spent on Each Meeting 4.2 hours Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 234 Corporate Governance Overview Statement
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