Introduction for Shariah Committee | stc pay

The Shariah committee is responsible for supervising compliance with Shariah principles and rules and their application in the bank. And It consists of group of specialists whose knowledge and experience are not limited only to the Shariah and related matters, but also include the jurisprudence of contemporary financial transactions used to form Shariah decisions given to the bank.

The committee shall be responsible for all its decisions related to Shariah matters. The board must rely on the committee for issuing Shariah decisions related to engaging in Islamic banking activities. The committee shall perform the following tasks:

It shall supervise the compliance of Islamic banking transactions with the Shariah principles and rules. Shariah compliance reports and internal Shariah audit observations should enable the committee to identify issues that require attention and, where appropriate, propose corrective measures.

It shall issue decisions on Shariah matters so that the bank can comply with the Shariah principles and rules.

It shall ensure that the Shariah policies and procedures developed by the bank are consistent with the Shariah principles and rules.

The committee shall assess the compliance and internal Shariah audit work to ensure compliance with the Shariah aspects. Such assessment is part of the tasks related to submitting the reports on assessment of Shariah compliance.

It shall inform the board, and recommend appropriate corrective actions, if it is proven to the committee that the bank has engaged in Islamic banking activities that are not Shariah compliant.

It shall prepare an annual report on the compliance of the banking Islamic activities of the bank with the Shariah principles and rules and submit it to the board.