• Regular Updates on Compliance Report Regular review on Compliance frameworks, policies, guidelines, tools and methodologies are carried out to ensure it remains relevant to the business requirements and the applicable laws and regulations. All Compliance activities undertaken by the Group are regularly reported and deliberated at the Board Risk Committee. Compliance also reports to the Board through its Compliance Risk Report on strategic issues that require oversight and attention of the Board. • Human Resources Management The effectiveness of the risk management and internal control system of the Group relies on the responsibility, integrity and sound judgment of its employees. Hence, the Group has established policies and procedures governing the recruitment, appointment, performance management and rewards as well as procedures relating to discipline, termination and dismissal for the employees. Human capital development, talent management and succession planning are given priority to ensure sustainability. • Code of Ethics and Code of Conduct The Code of Ethics and Code of Conduct have been established by the Group to ensure a high standard of ethical and professional conduct is upheld by all employees in performing their duties and responsibilities. New recruits are briefed on the Code of Ethics and they have to sign a declaration upon joining the employment. • Fraud Management Special Investigation Unit (SIU) has been established within the Integrity and Governance Department of Group Compliance Division and it is responsible for assessing complaints received, detection and investigation of any possible internal or external fraud reported. SIU strives to maintain absolute transparency of reporting and independence of investigation without influence from any internal or external parties. The SIU function is overseen by the Board Audit & Examination Committee and where it involves high profile and/or whistleblowing cases, the Group Chief Integrity & Governance Officer (GCIGO) reports directly to the Board of Directors. • Group Whistleblowing Policy The Whistleblowing Policy has been put in place to provide an avenue for all employees of the Group and members of the public to disclose any unethical or improper conduct within Bank Islam Group and to provide protection for employees and members of the public who report such allegations. An enhancement has been made to the WB channel pursuant to the group harmonisation exercise by introducing tier-based WB disclosure structure including for the subsidiaries. • Group Anti-Bribery and Corruption Policy The Group’s Anti-Bribery and Corruption Policy (ABCP) was developed as part of Bank Islam’s commitment to integrity and sustainable way of doing business. The ABCP is aligned with all relevant laws and regulations, including the National Anti-Corruption Plan (NACP) and Malaysian Anti-Corruption Commission (MACC) Act 2009. The ABCP underpins a zero-tolerance approach and guides Bank Islam to ensure that all opportunities on corruption and any action in relation to bribery, conflict of interest, malpractice, abuse of power could be effectively and efficiently addressed as well as ensuring compliance with all applicable anti-corruption policy. • Financial Crime Compliance The Group has established comprehensive controls to anticipate, prevent, detect and respond to any money laundering and terrorist financing activities. The AML/ CFT policy outlines the roles and responsibilities and clear accountability of the Board of Directors, Senior Management and its employees. • Independent Assurance by the Internal Auditors The Board has established the Internal Audit function to provide independent assurance on the adequacy and effectiveness of the governance, risk management and internal control. The Internal Audit is headed by the Group Chief Internal Auditor who report functionally to the Board Audit & Examination Committee and administratively to the Group Chief Executive Officer. The internal audit process and activities adopt the standards and principles outlined in the Internal Control Framework of Committee of Sponsoring Organisation of the Treadway Commission (COSO) and the objectives set by the Institute of Internal Auditors’ International Professional Practices Framework which comprises the core principle for the Professional Practice of Internal Auditing, the definition of Internal Auditing and Code of Ethics. • Bank Islam Group’s Business Associates Awareness Program Following the enforcement of Section 17A of MACC Act 2009 which introduces the Corporate Liability provision and in ensuring the Bank Islam Group’s business associates are aligned with our commitment toward corrupt-free organisation, Compliance Academy, Policy & Strategy (CAPS), has conducted an awareness session from 5th December – 9th December 2022 with 230 business associates` attendees to reinvigorate their obligations, commitment, and adherence to the principles of good corporate governance, fairness and transparency in relation to all its dealings and business activities with the Group as well as observing the Group’s shared value, “Act with Integrity”. All of Bank Islam Group’s business associates ought to acknowledge Bank Islam Group’s Integrity Kit as proof of their assiduous dedication towards zero-tolerance approach against all forms of bribery and corruption. Integrated Report 2022 218 Statement on Risk Management and Internal Control
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