The Company must establish effective internal Shari’ah controls comprising three lines of defense approach that are independent from each other, which includes:
a.
the first line of defense, represented by the business line, which shall set clear policies, procedures, and controls, approved by the ISSC, for executing the business activities in a manner compliant with Islamic Shari’ah Provisions at all times.
b.
the second line of defense, represented by the Internal Shari’ah Control Division, which undertakes the functions prescribed in Article (10) , and it shall not be organizationally part of any business division or reporting to it.
c.
the third line of defense represented by Internal Shari’ah Audit Division, which undertakes Shari’ah audit and monitors compliance prescribed in Article (11), and it shall not be organizationally part of any business division or reporting to it.
9.2
The Company must provide sufficient financial and human resources that suit the size and nature of Company’s activities so that Internal Shari’ah Control Division and Internal Shari’ah Audit Division can carry out their work effectively and efficiently, in consultation with the ISSC.
9.3
The Internal Shari’ah Control Division and Internal Shari’ah Audit Division perform two different tasks, and must be separate from each other in terms of reporting and human resources, in accordance with the three lines of defense approach.