Bank Islam Integrated Annual Report 2020

Code of Conduct In accordance with its Code of Conduct, SSC members are expected to possess good ch a r a c t e r , c omp e t e n c e , diligence and capability of making sound judgment. To en s u r e t h e qua l i t y and consistency of the decisions, the SSC ha s f o rmu l ated the Methodology and Means of Decision Making to arrive to a decision on a given issue by applying the ɃȮɃǪ ǅǒȥǍ discipline and making reference to Shariah standards, ǅƃȻɛƃ and resolutions of Shariah authority councils and ǅ ǒȥǍ academies. It also enables the SSC and the Bank to review previous decisions at the request of the Bank or on its own initiative. implement effective Shariah governance policies, procedures and practices; ȈȴɥȢǉȴǉȶɽ ɽȃǉ ɨʍȢȈȶǼɰ Ɂǹ ɽȃǉ Č : Ɂǹ 9ÇÃ ƃȶǁ ɽȃǉ ǁǉƺȈɰȈɁȶ Ɂɨ ƃǁʤȈƺǉ Ɂǹ the SSC; implement an effective communication pol icy that suppor t s a sound understanding of Shariah matters across the Bank; conduct regular assessment to evaluate the quality of operational support provided to the SSC and address any inadequacies arising thereof; report to the Board and SSC on a timely basis any potential or actual Shariah non-compliance events; Authority The SSC has the authority to do the following: Decide on Shariah related matters referred to the SSC by taking into consideration of the published rulings Ɂǹ ɽȃǉ ČȃƃɨȈƃȃ ǁʤȈɰɁɨʰ :ɁʍȶƺȈȢ ӯČ :Ӱ Ɂǹ 9ÇÃӝ ȶ ɽȃǉ ǉʤǉȶɽ ʥȃǉɨǉ ɽȃǉ decision given by the SSC is different ǹɨɁȴ ɽȃǉ ɨʍȢȈȶǼ ǼȈʤǉȶ ƹʰ ɽȃǉ Č :ӗ ɽȃǉ ɨʍȢȈȶǼɰ Ɂǹ ɽȃǉ Č : ɰȃƃȢȢ ɥɨǉʤƃȈȢ ӝ However, the SSC is allowed to adopt a more stringent Shariah decision; Decide on Shariah related matters referred to the SSC without undue influence that would hamper the SSC from exercising objective judgment in deliberating issues brought before them; Ensure that decisions made by the SSC a r e du l y ob s e r v e d and implemented by the Bank. Decisions made by the SSC should not be set aside or modified without its consent; ƺƺǉɰɰ ɽɁ ƃƺƺʍɨƃɽǉӗ ɽȈȴǉȢʰ ƃȶǁ complete information f rom the Management including but not l imited to al l relevant records , transactions, or manuals as required by them in performing their duties. I f the informat ion prov ided i s insufficient, the SSC may request for additional information which shall be duly provided by the Bank; and Inform the Board of any case that the SSC has reason to believe that the Bank has been carrying on Shariah non-compliant activities and to recommend suitable measures to rectify the situation. In cases where Shariah non-compliant activities are not effectively or adequately addressed or no rectification measures are made ƹʰ ɽȃǉ 9ƃȶȟӗ ɽȃǉ ČČ: ɰȃƃȢȢ ȈȶǹɁɨȴ 9ÇÃ of the fact. In this case, the SSC will not be regarded as breaching the confidentiality and secrecy code if the confidential information is disclosed ɽɁ 9ÇÃ Ȉȶ ǼɁɁǁ ǹƃȈɽȃӝ Responsibilities of the Bank Towards Shariah Compliance The Bank works with the SSC to ensure that all business activities, products, services and operations are in compliance with Shariah rules and principles. While the SSC is responsible for forming and expressing decisions on the Bank ’s compliance with Shariah, the ultimate responsibility for compliance rests with the Management. Therefore, it is the responsibility of the Bank to perform including but not limited to the following: establish a management structure and reporting arrangement that provides a clear scope of accountability between the business lines and the internal control functions that are involved in managing Shariah non- compliance r isks , including the accountability of the senior officer’s leading Shariah related functions; Appo i n tmen t and Re - Appointment of Members T h e B o a r d , o n t h e ɨǉƺɁȴȴǉȶǁƃɽȈɁȶ Ɂǹ ɽȃǉ 9ÇĄ:ӗ decides on the appointment and re-appointment of the SSC ȴǉȴƹǉɨɰӗ ɰʍƹȚǉƺɽ ɽɁ 9ÇÃԇɰ written approval. The Board ensures that the SSC members have the necessary credibility, integrity and calibre and the required skills and knowledge. The appointment and re- appo intment of the SSC members is subject to the Fit ƃȶǁ ĀɨɁɥǉɨ :ɨȈɽǉɨȈƃ ƃǁɁɥɽǉǁ ƹʰ Bank Islam as required by ɥƃɨƃǼɨƃɥȃ Ѵѵ Ɂǹ ɽȃǉ Č{ĀA ƃȶǁ yȈɽ ƃȶǁ ĀɨɁɥǉɨ ɥɁȢȈƺʰ ǁɁƺʍȴǉȶɽ Ȉɰɰʍǉǁ ƹʰ 9ÇÃӝ BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 159