AAPG 3 (Revised 2018) does not require the external auditors to consider whether the Directors’ Statement on Risk Management and Internal Controls covers all risks and controls, or to form an opinion on the adequacy and effectiveness of the Group’s risk management and internal controls systems including the assessment and opinion by the Board of Directors and Management thereon. The auditors are also not required to consider whether the processes described to deal with material internal controls aspects of any significant problems disclosed in the Integrated Annual Report will, in fact, remedy the problems. This statement is made in accordance with the resolution of the Board dated 15 April 2024. (a) has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers, or (b) is factually inaccurate. Going forward, National Anti-Corruption Strategy (NACS) will be introduced, and it is foreseeable that this will determine the direction of the Bank’s OACP with emphasis on enhancement to the priority areas bringing improvement to the governance landscape. In 2023, GIU as the OACP secretariat had monitored and evaluated the implementation of OACP action plan and initiatives. The lead divisions who is responsible for the OACP will provide progress reports on the implementation of initiatives to GIU. Subsequently, GIU will present a report on the implementation status of OACP initiatives to Group Management Executive Committee (GMEC) and BAEC, biannually and to the relevant regulatory authorities, as and when necessary to provide updates on the progress. ISO 37001 ANTI-BRIBERY MANAGEMENT SYSTEM Bank Islam proudly became the first full-service Islamic financial institution in Malaysia to achieve the ISO 37001 ABMS certification on 31 August 2023. This accreditation sets new standards in the industry and distinguishes Bank Islam as an ethical and responsible organisation. Bank Islam implemented the ISO 37001 ABMS Certification, aligning the operations with guidelines that combat bribery. This standard offers a framework for organisations to enhance anti-bribery efforts. Adopting this voluntary standard enables us to prevent and address bribery, affirming our commitment to ethical business practices. This step is integral to our strategy aimed at upholding the highest standards of conduct, governance, and integrity. The certification process includes ongoing Surveillance Audits in Years 2 and 3 by the Certification Body and Internal Audit Based on the review conducted, the external auditors have reported to the Board that nothing has come to their attention that would cause them to believe that this Statement: Reviews by ABMS Ambassadors to ensure continuous adherence to ISO 37001 standards. The establishment of ABMS Guidelines further supports this initiative, offering clear guidance on the processes, responsibilities, and policies required by the Standards. ASSURANCE FROM MANAGEMENT The Board has received assurance from Bank Islam’s GCEO and the Group Chief Financial Officer that the Group’s risk management and internal controls systems are operating adequately and effectively, in all material aspects, during the financial year under review and up to the date of this Statement. Taking into consideration the assurance from the Management and the input from the relevant assurance providers, the Board is of the view that the systems of risk management and internal controls are performing satisfactorily and are adequate to safeguard the shareholders’ investments, customers’ interest and the Group’s assets. The Group will continue to implement new measures to strengthen the internal controls and risk management environment. REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS The external auditors have reviewed this Statement on Risk Management and Internal Controls pursuant to the scope set out in the Audit and Assurance Practice Guide 3 (AAPG 3) (Revised 2018), Guidance for Auditors on Engagements to Report on the Statement on Risk Management and Internal Controls included in the Integrated Annual Report issued by the Malaysian Institute of Accountants (MIA) for inclusion in the Integrated Annual Report of the Group for the financial year ended 31 December 2023. 245 1 2 3 4 5 6 7 8 9 www.bankislam.com ACCOUNTABILITY
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