Foundations of Shari'ah Governance of Islamic Banks

Appendix 4.1

Sample Sharī‘ah Governance Manual¹²

TABLE OF CONTENTS

1. 1.0 Sharī‘ah Governance
2. 2.0 Sharī‘ah Supervisory Board
3. 3.0 SSB Composition and Appointment
4. 4.7 Independence and Objectivity of the SSB
5. 5.0 “Fit and Proper” Criteria for SSB Members
6. 6.0 Key Duties of the SSB
7. 7.0 SSB Meetings
8. 8.0 Sharī‘ah References
9. 9.0 Grounds for Disqualifying SSB Members
10. 10.0 Management’s Responsibilities toward the SSB
11. 11.0 Internal Sharī‘ah Control System
12. 12.0 Internal Sharī‘ah Audit Function
13. 13.0 Management’s Responsibilities towards Internal Sharī‘ah Audit
14. 14.0 Internal Sharī‘ah Audit Personnel
15. 15.0 External Sharī‘ah Audit

1.0 Sharī‘ah Governance

1. 1.1 Through key sharī‘ah governance arrangements, the bank will monitor and ensure sharī‘ah compliance of activities at all the times and levels. The Board of Directors (BOD) is ultimately responsible for overseeing the establishment of efficient and effective organizational arrangements for sharī‘ah governance that adequately assess and manage the bank’s exposure to sharī‘ah risk and minimize its impact. Such arrangements include the Sharī‘ah Supervisory Board (SSB), internal sharī‘ah control system, sharī‘ah risk management processes, and sharī‘ah governance policies and measures that are commensurate with the needs of the bank and in line with laws, regulations, and best practices.
2. 1.2 Senior management is responsible for ensuring that arrangements instituted by the BOD are implemented through efficient and effective processes and systems, ...