1.1 This Guidance Note Re Charter of Internal Shari’ah Supervision Committee (“Guidance Note” or “Note”) complements the Standard Re Shari’ah Governance for licensed financial institutions that conduct all or part of their activities and businesses in accordance with the provisions of Islamic Shari’ah (“Islamic Financial Institutions” or “IFIs”) that was issued by the Central Bank (“Shari’ah Governance Standard” or “SGS”) with the aim to promote development of the banking system and to ensure its effectiveness and efficiency.
1.2. IFIs must establish Shari’ah governance policies and governance mechanisms to ascertain that the adopted Charter of Internal Shari’ah Supervision Committee (“Charter”) is compliant with requirements outlined in the Guidance Note and requirements outlined in the regulations, standards and resolutions issued by the Central Bank and the Higher Shari’ah Authority (“Regulations, Standards and Resolutions”).
1.3. Where the Guidance Note contains a stipulation (in an article) to provide information, or undertake certain measures, or address particular terms, as a minimum requirement, the Central Bank may impose (new) requirements additional to those specified in the relevant article (of the Guidance Note).