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)