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Section 05 Upholding Accountability
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4) Where the SC has reason to believe that any Shariah issues or matters may affect the safety and
soundness of the Bank, it must immediately update the Board of Directors (the Board) on such matter.

5) In cases where the SAC has not made any rulings on a particular matter or the SC is not able to arrive at a decision
or advice, the Bank shall refer to the SAC for a ruling in accordance with Manual Rujukan Institusi Kewangan Islam
kepada Majlis Penasihat Syariah. Any requests for a ruling or advice shall be communicated through the Secretariat
of the SAC.

6) In the event where the SC decides or advises to place additional restrictions on the operations, business, affairs and
activities of the Bank in applying the SAC rulings, the Bank must:

(i) document the deliberations and justifications of the SC’s decision or advice;
(ii) ascertain the Board’s views on the decision or advice made by the SC with regard to the SAC ruling; and

(iii) ensure immediate notification to BNM of such decision or advice.

7) The Bank shall ensure that any record of the SC’s decision or advice to be submitted to BNM, including a
rectification plan to address a SNC event, is supported with key deliberations, rationales and any significant concerns
or dissenting views to the decision or advice.

8) The SC shall be empowered to reserve the right to delegate some of its functions to SMD and other Shariah
control functions of the Bank in endorsing and validating product 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, or on a regular basis, the level
of Shariah compliance, particularly with regard 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.
9) SC members must exercise objectivity in coming up with their judgment and be free from associations or
circumstances that may impair the exercise of their professional objectivity. In fulfilling their responsibility, SC members
must ensure that their judgment in arriving at a Shariah decision or advice is not affected by their other professional
commitments.

10) SC members must devote sufficient time to prepare for and attend Shariah Committee meetings.
11) SC members must ensure consistency in providing their 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.
12) All SC members must disclose the nature and extent of any interest that constitutes or gives rise to a conflict
or potential conflict of interest upon the appointment, reappointment or as soon as there are any changes
in their circumstances that may affect their status.