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3. ROLES AND RESPONSIBILITIES (CONT’D)
The main duties and responsibilities of the SC are
as follows:
a) To advise the Board on Shariah matters in its
Islamic business operation
The SC shall advise the Board on Shariah
matters in order to ensure that the Islamic
business operations of EXIM Bank comply with
Shariah principles at all times.
b) To endorse Shariah Policy and Procedure
The Shariah Policy and Procedure shall be
endorsed by the SC to ensure that the contents
do not contain any elements which are not in
line with Shariah.
c) Toendorse andvalidate relevant
documentations
To ensure that the Islamic finance products of
EXIM Bank comply with Shariah 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.
d) To assist related parties on Shariah matters
for advice upon request
The related parties of EXIM Bank such as its
legal counsel, auditor or consultant may seek
advice on Shariah matters from the SC.
The SC is expected to provide assistance to
them so that the compliance with Shariah
principles can be assured completely.
e) To advise on matters to be referred to
the Shariah Advisory Council (SAC) Bank
Negara Malaysia
The SC may advise EXIM Bank to consult the
SAC on any Shariah matters, which have not
been resolved or endorse by the SAC.
f) To provide written Shariah opinion
The SC is required to record any opinion given.
In particular, the Committee shall prepare
written Shariah opinions in the following
circumstances:
(i) Where EXIM Bank make reference to the
SAC for advice; or
(ii) Where EXIM Bank submits application to
Bank Negara Malaysia for new product
approval. The 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 Committee.
g) To assist the SAC of BNM on reference
for advice
The SC must explain the Shariah issues
involved and the recommendations for a
decision. It must be supported by relevant
Shariah jurisprudential literature from the
established sources.
The SC is also expected to assist the SAC on
any matters referred by EXIM Bank. Upon
obtaining any advice of the SAC, the SC shall
ensure that all SAC’s decision are properly
implemented by EXIM Bank.
h) Assess work carried out by Shariah review,
research, compliance and audit.
Assess work carried out by Shariah review,
research compliance and audit functions
in order to ensure compliance with Shariah
matters in its Islamic business operations.
i) To recommend on the appointment and
reappointment of SC members and Chairman
The SC may recommend on the appointment
and reappointment of SC members and the
Chairman for consideration and submission to
Nomination Committee and Board of Directors.
EXIM Bank Annual Report 2013
061