100
productstewardship
OURPRODUCTSANDSERVICES
Board Oversight, Accountability &
Responsibility
Board
Shariah Committee
Board Committees
Oversight, Guidance & Observation
Executive Committees
Execution of the Framework via the four lines of defence
1st Line
Management and Business Unit
• Provides adequate resources and capable manpower.
• Identifies and manages the risk inherent in the products, services and activities for which they are responsible.
• Creates and enhances policies and operational process flows relating to products offered. Acts as the key liaison to various process owners for
syndication prior to rollout.
2nd Line
ShariahManagement
(Including Advisory and Research functions)
• Ensures that all structures, terms and conditions, legal documentation, and operational process flows and procedures are Shariah-compliant.
3rd Line
RiskManagement
(Including Shariah Risk functions)
• Systematically identifies, measures, monitors and controls Shariah non-compliance risks to mitigate any possibility of non-compliance events.
4th Line
Shariah Audit and Shariah Review and Compliance
• Provides independent and periodical assessments to improve the degree of compliance in ensuring a sound and effective internal control
system for Shariah compliance.
• Continuously review processes and deliverables, as well as determine that such processes and outcomes satisfy the requirements of Shariah.
As the Head of Shariah Management, En Muhd Ramadhan Fitri Ellias oversees all Shariah-related matters pertaining to retail, business and corporate banking, treasury, debt
markets, equity markets and asset management.
Can you explain the role of the Shariah Committee?
The main role of the Shariah Committee is to perform an oversight role in Shariah-related matters for MGIB. The
Shariah Committee oversees the business operations and activities through the observations and reports of the Shariah
Review and Shariah Audit by identifying possible Shariah issues and proposes the necessary corrective measures. It is
the responsibility of the Shariah Committee to ensure that pre- and post-execution of Islamic business activities are
Shariah-compliant. With regard to pre-execution, the Shariah Committee ensures that the structure and documentation
of Islamic financing products are Shariah-compliant. As for post-execution, the Shariah Committee, with assistance from
the Shariah Review and Shariah Audit, will monitor the execution of Islamic business activities and ensure that it is as
per the standards and parameters approved. Furthermore, the Shariah Committee is expected to provide assistance to
the Management or any related party in overseeing the enforcement and implementation of the Shariah Committee’s
resolutions.
What is the Shariah Committee governance structure like?
Our Shariah Committee is the authority when it comes to Shariah-related matters. It is at par with other board
committees. It is an independent committee to decide on any Shariah resolution. A sound and robust Shariah governance
framework is reflected by an effective and responsible board and management, an independent Shariah Committee that is
both competent and accountable, and supported by strong internal Shariah functions. The end-to-end Shariah governance
framework will be executed through four lines of defence that cater both pre-execution and post-execution. The table
below illustrates a model structure and its respective functions are in each line of defence.
muhd ramadhan
fitri bin ellias
HEADOF shariah
management
