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A VISION COMMITMENT EMPOWERING ENSURING ENHANCINg FINANCIAL
70 EXIM BANK MALAYSIA ANNUAL REPORT 2022 TO SERVE TO LEAD GROWTH SUSTAINABILITY gOVERNANCE STATEMENTS 71

7. To has rights to delegate some of its functions to Shariah Management Department and other Shariah control functions of
the Bank in endorsing and validating products guidelines, marketing advertisement, sales illustrations and brochures used to
describe the Bank’s products. Similarly, the Shariah Committee 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 Shariah Committee and operating procedures are set out clearly in the Bank’s
internal policies.
ii) Reporting arrangements are established to keep the Shariah Committee informed of the work, key deliberations,
and decisions on delegated matters.

iii) The Shariah Committee must remain fully accountable for the decisions and any ensuing implications arising from the
delegated responsibility.

8. To exercise objectivity in coming up with his judgment and be free from associations or circumstances that may impair the
exercise of his professional objectivity. In fulfilling his responsibility, a Shariah Committee member must ensure that his
judgment in arriving at a Shariah decision or advice is not affected by his other professional commitments.

9. Shariah Committee is expected to devote sufficient time to prepare for and attend Shariah Committee meetings.

10. To ensure consistency in providing views and must not act in a manner that would undermine the rulings of the SAC or any
decisions of the Shariah Committee that they represent.

11. To endorse relevant EXIM Bank’s 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 finance products of the Bank comply with Shariah principles in all aspects, the Shariah Committee
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 Shariah Committee 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 Shariah Committee so as to ensure
compliance with the Shariah principles.
15. To advise the Bank to refer the SAC on any Shariah matters that could not be resolved. Upon obtaining any advice of the SAC,
the Shariah Committee to ensure that all SAC’s decision is properly implemented by the Bank.
16. The Shariah Committee 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 operation as and when necessary.
17. The Shariah Committee may recommend and assess the nominees for Shariah Committee members. This includes assessing
Shariah Committee members proposed for reappointment, before submission to Nomination and Remuneration Committee
(NRC), the Board and subsequently, for final approval by BNM.