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ANNUAL REPORT 2021 91

ShaRIah COmmITTEE’S REPORT

Disclosure on Shariah Non-Compliant Event
During the financial year, we have identified two (2) incidents of Shariah non-compliance event related to the following:

Events Measures Taken

Treatment of Non-Claim Bonus (“NCB”) for Trade Takaful (i) Reversal on the affected NCB amount to Risk Fund through
Credit (“TCT”) Product muqassah (set-off) arrangement on the repayment of qard
NCB was taken from both Risk Fund and Operator Fund instead of (loan) from Operator’s Fund to Risk Fund.
Operator Fund only. (ii) Review of Takaful Documentation i.e., Master Certificate
and Endorsement Letter: Incorporation of generic clause
in the Takaful Fund to provide disclosure to Participant that
the Bank/Takaful Operator could manage the Takaful fund
as deemed fit for the Takaful business purposes that is for
the benefit all of Participants.
(iii) Enhancement of the endorsement on NCB to be issued to
active Participants.

(iv) Internal process improvement: Reviewed and updated the
Standard Operating Procedures (“SOP”) for the relevant
department with regards to NCB.

Absence of Tawarruq Transaction with Bursa Suq-Al-Sila for (i) The profit amount of RM 1,600.05 arising from the actual
one vendor under the Vendor Financing Scheme-i SNC event is impure income. It is agreed that the Bank
Tawarruq transaction not performed prior to disbursement to shall purify the income by channelling it to the Bank’s
one of Proton’s vendors under the Vendor Financing Scheme-i Charity Fund.
(ii) Internal process improvement: Enhancement on the
internal process related to Tawarruq Transaction for Islamic
financing disbursement in the respective departments’
SOP.
(iii) Leveraging on Designated Compliance & Operational Risk
Officers (“DCORO”) in respective departments to mitigate
potential events that may lead to SNC.
(iv) Conduct Key Control Testing (“KCT”) on tawarruq related
disbursement process to ensure the control effectiveness
to detect, prevent and correct the SNC risk event.

(v) Shariah Review of the Bank to continuously perform review
exercises on the related department to ensure overall
compliance.

We were also informed on the causes of the incident and noted that the Bank has taken adequate measures to avoid recurrence
of the incidents.
We also confirmed that the SNC event together with the rectification plan were presented to the Board of Directors and us and
reported to BNM in accordance with the BNM’s reporting requirement of Operational Risk Integrated Online Network (“ORION”).