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  • Chapter Six: Independence and Confidentiality of Information

    • Article 13: Independence

      The independence of the Shariah committee in performing its duties to issue objective and reliable Shariah decisions shall be observed continuously as follows: 
       
      1.The board shall recognize the independence of the committee and ensure its freedom from any influence that would hamper the committee from issuing objective Shariah decisions when deliberating issues presented to the committee.
       
      2.The committee shall report to the board directly.
       
      3.The Shariah decisions issued by the committee should not be modified or set aside without its approval.
       
      4.The Shariah committee shall have accurate and complete information from the management. If the information provided is insufficient, the committee has the right to request additional information which shall be provided by the management.
       
      5.If the committee is not provided with the required information, the board shall be informed of the fact and an appropriate action shall be taken to rectify the situation.
       

    • Article 14: Confidentiality of Information

      1.Internal information obtained by the committee members in the course of their duties shall be kept confidential and shall not be misused. Confidential or sensitive information obtained by any member of the committee while performing his duties shall not be used in any manner that could be detrimental to the bank.
       
      2.Notwithstanding the above, the committee will not be regarded as breaching the confidentiality code if the information was disclosed to SAMA when reporting serious breaches of Shariah Principles and Rules by the bank.
       

    • Article 15: Maintaining Professional Ethics, Judgment, and Consistency to Ensure Compliance with Shariah Principles and Rules

      In ensuring the quality and consistency of the Shariah decisions, the committee shall develop a structured procedures for arriving at Shariah decisions to be documented, approved and maintained in order to ensure the credibility of decision making and protect the committee from undue influences. In this regard, please check the development process of Shariah-compliant products described in Chapter Nine of this framework.