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Objectives & Rules

Objectives & Rules

Objectives

  1. Defining Shariah terms with respect to all transactions executed in the bank
  2. Verifying that all bank transactions are Shariah-compliant
  3. Participating in discussion and review of issues that promote the bank’s performance in relation to Shariah-compliance as well as maintaining the Islamic identity of the bank in terms of policies, procedures and standards
  4. Enhancing the bank’s contribution in introducing and developing Shariah-compliant banking

Mandate

The Shariah board’s role is to study all transactions and activities carried out by the bank’s groups and to control the manner in which the bank operates both inside and outside Saudi Arabia with regard to Shariah-compliance. The most important functions performed by the board are:

  • Examining the bank’s transactions, contracts, agreements, documents and forms and then providing a Shariah opinion of them
  • Participating in product innovation and development in light of Shariah-compliance
  • Ensuring that the bank is committed to Shariah-compliance in all its activities and transactions and ensuring the proper implementation of the committee’s resolutions
  • Approving Shariah-compliance standards
  • Studying reports related to Shariah-compliance performance and issuing directives to take corrective action when necessary
  • Establishing mechanisms for the disposal of funds that have been earned or acquired in violation of Shariah principles and supervising their disbursement
  • Revising the bank’s financial statements (including the Shariah mandated calculation of Zakat) before being approved by the Board of Directors
  • Issuing periodic reports on the bank’s performance from a Shariah-compliance perspective, circulating it to shareholders and providing responses to shareholders’ questions related to the reports
  • Evaluating the technical performance of the bank’s Shariah Group
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