Page 70 - EXIM_AR2021

68 ENHANCING EXIM BANK MALAYSIA
GOVERNANCE

DISCLOSURE ON

SHARIAH GOVERNANCE

SECRETARIAT TO THE SHARIAH COMMITTEE

The Shariah Management Department (SMD) plays the role of secretariat to the SC and has the responsibility of providing operational
support for the SC’s effective functioning.

The SMD is structured into three (3) main categories to carry out its designated functions, inter alia, as per the following:
Shariah Advisory

• Providing Shariah-related advisory and consultancy on the Bank’s businesses, activities, operations, including but not limited to,
Islamic banking and Takaful businesses.

• Review and vet legal documents in relation to Shariah matters to ensure its’ compliance according to Shariah requirements.

• Review and verify that supporting documents, such as Islamic Transaction Forms (ITF) for disbursement, are intact and in order,
in accordance to Shariah parameters, via issuance of a Shariah Certificate.

• Provide and arrange training on Shariah, Islamic Banking and Takaful awareness programmes on governance and structures.
• Publication of Islamic Banking Materials, such as Muamalat 101, to all EXIM staff as part of awareness building and outreach.

Shariah Research
• Conduct in-depth research and studies on Shariah issues which are relevant to the Islamic finance businesses and operations of
EXIM Bank.
• Assist Shariah Advisory in providing day–to-day Shariah advice and consultancy to relevant departments/parties based on the
decision by the SC.
• Conduct pre-product approval process, Takyif Fiqhi (Fiqh adaptation), and vetting of issues for submission to the SC.

Shariah Secretariat
• Provide input and support to the SC which include, but are not limited to, Shariah meeting arrangements, takings minutes of
meetings, compiling Shariah resolutions, and circulating and contributing relevant information to SC members.
• Coordinate communications and dissemine information among the SC, the Board and senior management.

• Responsible for matters relating to appointment and re-appointment of the SC.

• Ensure the welfare of SC members are accordingly served, including payment of their allowances and sending them to seminars,
trainings and/or workshops, as part of the process of furnishing them with the latest development on Islamic banking and finance.

INTERNAL SHARIAH CONTROL FUNCTIONS

In ensuring effective management of Shariah non-compliance risk within EXIM Bank, the following functions perform their roles on
an ongoing basis:
i) Shariah risk management;

ii) Shariah review; and
iii) Shariah audit.