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  • SG-2.9 SG-2.9 Shari'a Pronouncements/Resolutions

    • SG-2.9.1

      Bahraini Islamic bank licensees must have in place an appropriate mechanism for obtaining rulings from the SSB, applying fatawa and monitoring Shari'a compliance in all aspects of their products, operations and activities.

      August 2017

    • SG-2.9.2

      The mechanism for obtaining rulings from the SSB, applying fatawa and monitoring Shari'a compliance must cover:

      (a) Both ex ante and ex post aspects of all financial transactions carried out by the Bahraini Islamic bank licensee — that is, to ensure Shari'a compliance of the contracts and, later, the performance of obligations under the contracts; and
      (b) Operations of the Bahraini Islamic bank licensee, including aspects such as Shari'a compliance review, investment policies, disposal of Shari'a non-compliant income, charitable activities, etc.
      August 2017

    • SG-2.9.3

      For purposes of Subparagraph SG-2.9.2(b), Bahraini Islamic bank licensees must ensure the following:

      (a) Disbursement of Shari'ah non-compliant income must be made to independent and reputed charity organizations not related directly or indirectly to the Bahraini Islamic bank licensee's approved persons and the SSB. Such disbursement must be made within 12 months unless approved by the SSB, and no more than 24 months in any circumstances.
      (b) The SSB, Shari'ah officer, Internal Shari'ah Auditor and External Independent Shari'ah Compliance Auditor are responsible to review the nature of charity transactions, the causes of non-compliance and establish procedures and processes to ensure that such cases are not repeated in the future.
      August 2017

    • SG-2.9.4

      Bahraini Islamic bank licensees should evaluate and assess the impact of their charity on the relevant causes / communities and disclose the findings in their annual report.

      August 2017

    • SG-2.9.5

      The Bahraini Islamic bank licensee must fully understand the legal and regulatory framework for issuance of Shari'a pronouncements/resolutions in the jurisdiction where it operates. It must ensure that its SSB strictly observes the said framework.

      August 2017

    • SG-2.9.6

      The Bahraini Islamic bank licensee must ensure that the SSB adopts a specified process for changing, amending or revising any Shari'a pronouncements/resolutions issued by it. Appropriate and timely disclosure must be made to shareholders and/or the public whenever the SSB departs from or revises any of its Shari'a pronouncements/resolutions subject to SSB approval.

      August 2017