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  • SG-3 SG-3 Shari'a Coordination and Implementation

    • SG-3.1 SG-3.1 Principle

      • SG-3.1.1

        Bahraini Islamic bank licensees must have a dedicated Shari'a Coordination and Implementation function comprised of Shari'a officers and staff. The head of the function must report technically to the SSB and administratively to the CEO to ensure his independence. The function must be adequately staffed with proficient persons having the relevant qualification and experience (See Appendix TC-1 in Module TC (Training and Competency)).

        August 2017

      • Policy and Procedures

        • SG-3.1.2

          The Shari'a Coordination and Implementation function must be governed by a policy and procedures manual prepared by the management in consultation by SSB. The policy must be approved by the board of directors while the procedures must be approved by senior management.

          Amended: January 2020
          August 2017

      • Shari'a Officer

        • SG-3.1.3

          The Shari'a Officer must be a full time employee of the Bahraini Islamic bank licensee and must be responsible at the product design/development stage for assisting the SSB in the issuance of Shari'a pronouncements/resolutions, fatawa, guidelines and instructions about the products and services offered by the Bahraini Islamic bank licensee.

          August 2017

        • SG-3.1.4

          The Shari'a Officer must be appointed by the management subject to the approval of the SSB and the approval of the CBB (See Chapter LR-1A).

          August 2017

        • SG-3.1.5

          Bahraini Islamic bank licensees must immediately notify the CBB when the Shari'a Officer, for whatever reason, ceases to hold the position (i.e. has resigned, been suspended or dismissed). In case of suspension or dismissal, the notification must include the reasons for the action taken (See Chapter LR-1A).

          August 2017

        • SG-3.1.6

          The Shari'a Officer or the Head of Internal Shari'a Audit function must be appointed as the secretary to the SSB.

          August 2017

    • SG-3.2 SG-3.2 Roles and Responsibilities of the Shari'a Officer

      • SG-3.2.1

        The Shari'a Coordination and Implementation function must review and evaluate, before any product or transaction is offered to the customer, the contracts, agreements, fees, charges, policies, procedures, product manuals, product transaction structures, complete offering documentation including promotion and marketing materials, advertisements and other communications to general public, memorandum and articles of association, and any other matter which can potentially impact the Shari'a compliance of the Bahraini Islamic bank licensee or influence the perception of its Shari'a compliance, and submit thereafter their report, along with all the relevant documentation, to the SSB for their review and decision.

        August 2017

      • SG-3.2.2

        The Shari'a Coordination and Implementation function must be involved in the testing and implementation of any new products or services to ensure full Shari'a compliance under the relevant fatawa. The function must also assist the relevant staff in dealing with any Shari'a non-compliance issues arising from the implementation stage.

        August 2017

      • SG-3.2.3

        The Shari'a Officer must participate in and arrange, in conjunction with the Human Resources Training Department, the training of the Bahraini Islamic bank licensee's employees. This can be done through holding regular meetings, discussion forums, arranging courses and seminars, etc. He must also disseminate knowledge by publishing and distributing pamphlets, brochures, etc., explaining principles of fiqh al-muamalat in general, and raising awareness of the fatawa issued by the SSB about the products and services offered by the Bahraini Islamic bank licensee.

        August 2017