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The Fatwa and Sharia’a Control Board is an independent body of scholars specialised in the Islamic jurisprudence as well as fatwa experts in accordance with the Sharia’a principles. It directs, monitors and supervises the bank’s activities to ensure that the bank’s management follows the provisions and principles of the Islamic Sharia’a in the bank’s operation and transactions.
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The Board’s decisions and fatwas are compulsory and binding on the bank’s management.
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The General Assembly appoints the Fatwa and Sharia’a Control Board based on the Board of Directors nomination, consists of not less than three members and not more than five members, and exception to the foregoing the Board of Directors appoints the primary Fatwa and Sharia’a Control Board.
The main Duties and Responsibilities of the Board are:
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To approve the Sharia’a aspects in the memorandum of association, articles of association and regulations as well as the forms and policies used by the bank.
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To approve the standard agreements and contracts pertaining to the bank’s financial transactions.
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To give a Sharia’a opinion regarding the products introduced by the bank and issues fatwas on the questions and transactions submitted to it.
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To follow up the bank’s operations and check its activities, to make sure that the concluded transactions are comprehended within the approved products by the Board.
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To present and suggest the possible Sharia’a solutions for the problems of the financial transactions inconsistent with the principles and provisions of Islamic Sharia’a as well find alternatives for the products repugnant to the Sharia’a rules.
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To extend enlightenment and guidance to the employee and prepare training programs for them related to the Islamic Financial transactions to assist them in achieving the consistency with Sharia’a rules.
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To give Sharia’a opinion regarding the financial Statements of the bank at the end of the financial year.
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To declare its objection on the transactions repugnant to the provisions of Islamic Sharia’a and correct it or stop it and advice the concerned department to not repeat it. The written objection shall be addressed to the Board of Directors.
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To review the reports of the Sharia’a Control Division concerning the audit of the bank’s transactions and to which extent such transactions are compliant with the provisions of Islamic Sharia’a and the fatwas and decisions of the Board.
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To write-off the prohibited profits earned through the non complaint ways to the provisions of Islamic Principle and spend it in charitable purposes.
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To ensure that the distribution of the profits and bearing of the loss are calculated in accordance to the Islamic Sharia’a principle.
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To ensure that Zakat account is calculated in accordance with the Islamic Sharia’a principle and Zakat standards of the Accounting and Auditing Organization for Islamic Financial Institutions, and notify the shareholders about the imposed Zakat per share, and to make sure that Zakat fund resources are distributed in accordance with the provisions of Islamic Sharia’a.
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To exercise its right to check and review the bank ledger, accounts and documents at any time and ask for any additional information that might be necessary to be obtained, and has the right to examine the bank assets and Liability.
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To present an annual report in front of the General Assembly of the bank encompasses the Board’s opinion about the bank’s transaction and operations which are done during the year and to which extent that the bank’s management has committed to the Board fatwas’ decisions and direction.