Page 80 - EXIM-Bank_Annual-Report-2023

EXIM BANK MALAYSIA
78 A Vision to Serve Empowering Growth Management Discussion and Analysis
ANNUAL REPORT 2023
Disclosure on shariah Governance

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

8. Endorsing relevant Bank’s policies and procedures to ensure that the contents do not contain any elements, which are not in
line with Shariah.

9. Ensuring 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.

10. Assessing relevant Shariah related reports carried out by Shariah review, Shariah risk management and Shariah audit functions
in order to ensure compliance with Shariah matters in its Islamic business operations.
11. The Shariah Committee is expected to provide assistance to 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.
12. Advising 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 will ensure that all SAC’s decision is properly implemented by the Bank.
13. 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.
14. 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.
training Requirements for Shariah Committee

The newly appointed member of the Shariah Committee has attended an in-house induction session arranged by Shariah
Management Department of EXIM Bank in order to provide the new member, not only with the overall understanding of EXIM
Bank’s business and operations, but also on the internal Shariah functions and roles. Shariah Committee members has attended
selected local programmes and seminars to keep them abreast with developments on Islamic financial business. Shariah Committee
members are recommended to attend courses, talks, training programmes and seminars to update themselves and to keep abreast
with new developments in the industry for their continuing knowledge and skills improvement.

Composition & Background
Current composition of Shariah Committee members of the Bank for 2023 are five (5) members where a majority, i.e., three (3)
members are Shariah qualified, while two (2) members are from non-Shariah backgrounds, to complement the robust and vigorous
deliberation of Shariah Committee meetings.