• CTRL Part 9.2 CTRL Part 9.2 Policies, procedures, systems and controls

    • CTRL 9.2.1 Policies — compliance with Shari’a

      An Islamic financial institution must establish and implement policies to ensure that its business is conducted in accordance with Shari’a. The policies must include effective and comprehensive procedures to ensure that the firm complies with:

      (a) Shari’a (in general and in relation to the requirements for Islamic financial contracts); and
      (b) the fatwas, rulings and guidelines issued by its Shari’a supervisory board.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 9.2.2 Policy and procedures manual for Islamic financial business

      An Islamic financial institution must establish, implement and maintain a policy and procedures manual for Islamic financial business. The manual must address the following matters:

      (a) how the compliance oversight function will be undertaken in relation to compliance with Shari’a;
      (b) how the institution’s Shari’a supervisory board will oversee and advise it in regard to the institution’s business;
      (c) how fatwas, rulings and guidelines of the Shari’a supervisory board will be recorded, disseminated and implemented and the internal Shari’a review undertaken;
      (d) how disputes and differences of opinion between the Shari’a supervisory board and the institution’s governing body in relation to Shari’a compliance will be addressed;
      (e) the process for approving the internal policies, procedures, systems and controls to ensure that:
      (i) the institution’s business is conducted in accordance with Shari’a; and
      (ii) information is disseminated to customers and investors appropriately;
      (f) how conflicts of interest and potential conflicts of interest will be identified and managed.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 9.2.3 Evaluation of information given to firm

      An Islamic banking business firm’s governing body must evaluate the suitability and effectiveness of the information and reports that it and the firm’s senior management receive under this Chapter. The test of suitability and effectiveness is whether the information and reports are suitable for effectively overseeing and implementing the principles and requirements set out in this Chapter.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)

    • CTRL 9.2.4 Stress-testing

      In carrying out stress-testing and developing its stress-testing scenarios, an Islamic banking business firm must consider the IFSB’s guiding principles on stress-testing for institutions offering Islamic financial services and the recommended standards for stress-testing issued by the Basel Committee on Banking Supervision.

       

      Derived from QFCRA RM/2020-4 (as from 1st July 2021)