Shari’ah Board Member

Role summary The SB member shall advise the Management Board (MB) of the Bank on all Shari’ah-related matters. The SB will check the Shariah-compliant assets and liabilities of the IBA and provide Shari’ah opinion on the same. The SB shall be responsible and accountable for all Shari’ah decisions. Whereas IBA management shall be responsible for the accuracy and the authenticity of the information provided to the SB. The SB shall provide the basis to develop a comprehensive Shari’ah compliance framework for all areas of operations of the IBA and shall review and approve all products/services offered and/or launched by the IBA. The SB member shall provide Shari’ah opinion on all IBA’s products and services and related agreements/contracts, structures, process flows, product manuals, marketing advertisements, sale illustrations, and brochures, etc. The SB member shall also provide an opinion on specifying the process/procedures for changing, modifying, or revisiting fatwa/ruling/guidelines, etc., already issued by the SB. Duties and responsibilities Serve as the final authority on Shari'ah matters, issuing fatwas and binding rulings on Islamic finance issues. Approve all Islamic products, manuals, policies, and standard operating procedures (SOPs) prepared by the Department. Ensure that Policies and Procedures do not contain elements that are not in line with Shari'ah. Endorse and validate relevant documentation, ensuring that Islamic finance products comply with Shari'ah principles in all aspects. Review and endorse terms and conditions contained in proposal forms, contracts, agreements, or other legal documents used in transactions. Provide assistance on Shari'ah matters to related parties, such as legal counsel, auditors, or consultants, to ensure compliance with Shari'ah principles. Prepare written Shari'ah opinions for new product approvals, including endorsements and decisions regarding Shari'ah compliance, supported by relevant Islamic Jurisprudence literature and reasoning. Oversee compliance with Shari'ah guidelines across departments to ensure adherence post-approval. Verify that profit distributions to depositors and investors comply with Islamic principles and DAB regulations. Identify Shari'ah non-compliant practices and recommend corrective measures. Support annual financial reporting by disclosing the bank’s Shari'ah compliance status. Act as a liaison between IBA and DAB Shariah Board regarding Shari'ah-related issues. Assess the work carried out by Shari'ah review, research, compliance, and audit functions to ensure compliance with Shari'ah matters in Islamic business operations. Competency Besides meeting the requirements of a qualified member of the SB, the SB members are expected to equip themselves with relevant knowledge on the current Shariah issues and development as well as to attend relevant trainings and programs provided by key Shariah bodies such as Islamic Fiqh Academy, Accounting and Auditing of Islamic Financial Institutions (“AAOIFI”), Islamic Financial Services Board (“IFSB”) and their successor organizations and other similarly renowned organizations. The Board of Management is responsible for facilitating these programs for the SB members. The SB members shall be individually assessed and reviewed on the level of competency and overall contribution based on their Shariah deliberations, and this shall be done at the renewal of their contract. Confidentiality and Consistency The SB members shall have the necessary access to both confidential and non-confidential files, records, conversations, and draft materials to the extent required to facilitate the SB in making their decisions, views, and opinions. Any sensitive information obtained by any member of the SB shall not be disclosed or used in any manner that may be detrimental to the IBA. Every member of the SB is entrusted with individual responsibility to observe the principle of confidentiality at all times. Confidential information is information received by the members of the SB that is not public in nature and has not been authorized to be made public. Confidential information includes, but is not limited to, the following: information on the development of new products and services; decisions of the Board of Supervisors or the Management; internal memorandums or reports prepared in connection with matters presented, or to be presented to the SB; the content or occurrence of conversations among members of the SB concerning matters deliberated in the meeting and representatives of the Bank; the progress status on a business transaction or action that has not been made public; views expressed by various parties in the course of discussions on a particular matter deliberated by the SB; and any subject matter that the Bank has indicated should not be revealed, such as internal policies and procedures. In order to ensure consistency and quality in the Shariah decisions and resolutions, the SB is expected to develop a structured process of decision-making that is documented, adopted, and maintained at all times to secure the credibility of the SB. The SB shall use international Islamic Finance best practices while deciding on the matters submitted to it. Report of the Shari’ah Board The SB of the IBA shall, based on the work of Shari’ah compliance review, prepare a report on the Bank’s Shari'ah compliance environment and conditions and share the same with the Board of Supervisors and send a copy thereof to the Islamic Banking department of the DAB. Job requirements Master's in Islamic jurisprudence (Usul al-Fiqh). Islamic transaction/commercial law (Fiqh ul-Mu'amalat) PHD holders in Islamic finance are preferred. Knowledge of or at least familiarity with the banking industry. Strong knowledge of Shariah & law or Fiqh ul Mu'amalat or experience of at least 5 years giving religious rulings. The Shariah board member should not be a government employee. Have at least three to five years of experience in research and development in Islamic banking and finance.