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66 EXIM BANK MALAYSIA
Annual Report 2020

SHARIAH GOVERNANCE DISCLOSURE REPORT

In addition to the above, any matters related to Shariah shall be within the ambit and purview of the SC, which include,
among others:

1) Advise the Bank on Shariah matters in order to ensure that the Islamic business operations of the Bank comply
with Shariah rules and principles at all times.

2) Endorse Shariah policies and procedures to ensure its contents do not contain any elements that are not in line with
Shariah rules and principles.

3) Ensure that the Islamic financing products of the Bank comply with Shariah rules and principles in all aspects, the SC 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.

4) Assess the work carried out by Shariah review, Shariah research and Shariah audit functions in order to ensure
compliance with Shariah matters in the Bank’s Islamic business operations.

5) The SC 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 SC to ensure compliance with the Shariah rules
and principles.
6) SC shall advise the Bank to refer to the SAC on any Shariah matters that could not be resolved. Upon obtaining any
advice of the SAC, the SC shall ensure that all SAC’s decision are properly implemented by the Bank.
7) The committee is required to record any opinion given. In particular, the SC shall prepare written Shariah opinions in the
following circumstances:
(i) Where the Bank makes reference to the SAC for advice; or

(ii) Where the Bank submits application to BNM for new product approval. SC shall provide the endorsement and
decision with regard to the Shariah compliance on the concept and the mechanism/structure of every new product,
furnishing the relevant fiqh literature, supporting evidence and reasoning. The endorsement shall be in the form of
a letter and a copy of the Shariah paper presented to the SC.

8) SC will represent the Bank in attending any meetings with the SAC or other relevant bodies pertaining to any Shariah
issues relating to the Bank’s Islamic business and operations as and when necessary.

9) The SC may recommend and assess the nominees for SC members. This includes assessing SC members proposed
for reappointment, before submission to Nomination and Remuneration Committee (NRC), the Board and subsequently,
for final approval by BNM.