SHARIAH NON-COMPLIANT EVENTS & NON-HALAL INCOME Throughout 2023, there was nil incidence confirmed as SNC events. However, there was SNC loss materialised from one SNC event which occurred in 2022 (RM7,364.38), where the amount had been disposed to charitable bodies. We noted that some of the Bank operations might lead to non-halal income, such as interest received, commissions from third party investment product and commissions from SNC merchants of card business. These streams of income had been unavoidable and shall be segregated from Bank’s income for the purpose of channeling to charity. Within this financial year, the Bank had collected Shariah non-compliant income amounting to RM38,479.65 with an additional amount of RM3,384.42 being brought forward from 2022 making the available amount for disposal totaling RM41,864.07. A total of RM39,782.45 from this amount had been purified and disposed of to charitable bodies upon our approval, as noted in Note 25 (Sources and Uses of Charity Fund) of our Financial Statement. BUSINESS ZAKAT In this financial year, the Bank had fulfilled its obligation to pay zakat on its business to state zakat authorities by adopting the capital growth computation method, in compliance with the Banking Zakat Management Manual (Pengurusan Zakat Perbankan) issued by the Wakaf, Zakat and Hajj Department (Jabatan Wakaf, Zakat dan Haji – JAWHAR). The Bank paid the zakat on the Bank’s portion namely, shareholders’ fund and other funds received by the Bank excluding depositors’ fund and Investment Account Holders’ fund. Several zakat authorities had mandated the Bank as their agent (wakil) to distribute a portion of the zakat paid by the Bank to eligible beneficiaries (asnaf) as guided by the Business Zakat Guideline of the Bank which we approved. SAFEGUARDING THE INTEREST OF INVESTMENT ACCOUNT HOLDERS (“IAH”) In ensuring that the interest and rights of IAH were protected, we confirmed that the profit allocation for the IAH was as per Shariah rules and principles where the profit computation formula had been duly presented and approved by us. The performance of the Investment Account had also been disclosed and reported via the issuance of Fund Performance Report (“FPR”), which had been made available on the Bank’s website. SADAQA HOUSE INITIATIVE In protecting the Sadaqa House fund and the interest of its donors, we confirmed that the fund management and distribution had been implemented as per the applicable Shariah rules and principles. We had approved the revision of Sadaqa House Management Guideline that governed the conduct and management of the Sadaqa House fund to ensure that its operation was in line with Shariah rules and principles. The Sadaqa House and Zakat Committee were both being chaired by the Group Chief Financial Inclusion Officer who had been mandated to execute the Sadaqa House initiatives in accordance with the Sadaqa House Management Guideline. We had also taken note of the financial statements of the Bank and were not aware of any non-compliance with the applicable Shariah rules and principles. 259 1 2 3 4 5 6 7 8 9 www.bankislam.com FINANCIAL STATEMENTS
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