Page 68 - EXIM_AR2021

66 ENHANCING EXIM BANK MALAYSIA
GOVERNANCE

DISCLOSURE ON

SHARIAH GOVERNANCE

7. To have the right to delegate some of its functions to the Shariah Management Department and other Shariah control functions
of the Bank in endorsing and validating products guidelines, marketing advertisements, sales illustrations and brochures used
to describe the Bank’s products. Similarly, the SC may delegate its power and authority to the Bank’s Shariah control functions
in reviewing, from time to time and on regular basis, the level of Shariah compliance, particularly with regards to the actual
implementation and operation of the Bank’s Islamic financial contracts.

In delegating any of its responsibility, it must be ensured that:
i) Areas of delegated authority by the SC and operating procedures are set out clearly in the Bank’s internal policies.

ii) Reporting arrangements are established to keep the SC informed of the work, key deliberations and decisions on delegated
matters.

iii) The SC must remain fully accountable for the decisions and any ensuing implications arising from the delegated responsibility.
8. In fulfilling his/her responsibility, a SC member must ensure that his/her judgment in arriving at a Shariah decision or advice is
grounded in objectivity and not affected by his other professional commitments, associations or circumstance.
9. All SC members are expected to devote sufficient time to prepare for and attend SC meetings.

10. To ensure consistency in providing views, and not act in a manner that would undermine the rulings of the SAC or any decisions
of the SC that they represent.
11. To endorse Shariah policies and procedures to ensure that the contents do not contain any elements which are not in line with
Shariah.
12. To ensure that the Islamic financing products of the Bank comply with Shariah principles in all aspects, the SC must endorse the
following:
i) The terms and conditions contained in the proposal form, contract, agreement or other legal documentation used in
executing the transactions; and
ii) The product manual, marketing advertisements, sales illustrations and brochures used to describe the product.

13. To assess work carried out by Shariah review, Shariah research and Shariah audit functions in order to ensure compliance with
Shariah matters in its Islamic business operations.

14. The SC is expected to provide assistance to the external/third party appointed by the Bank such as legal counsel, auditor or
consultant, in the event they seek advice on Shariah matters from the SC so as to ensure compliance with Shariah principles.

15. To advise the Bank to refer to the SAC on any Shariah matter that cannot be resolved. Upon obtaining any advice of the SAC,
the SC must ensure that all of the SAC’s decision is properly implemented by the Bank.

16. The SC will represent the Bank to attend any meetings with the SAC or other relevant bodies pertaining to any Shariah issues
relating to the Bank’s Islamic business and operations, as and when necessary.

17. The SC may recommend and assess the nominees for SC members. This includes assessing SC members proposed for
reappointment, before submission to the Bank’s Nomination and Remuneration Committee (NRC), the Board and subsequently,
for final approval by BNM.