Sharia Board
About the Shari'a Supervisory Board
- Definition of the Shari'a Supervisory Board and its functions and responsibilities:
The function of Shari'a Supervisory Board is to undertake the process of review, investigation and analysis of all works, actions and behaviors that are conducted by individuals, groups, institutions and business units to ensure their compliance with Shari’a. To do so, the Shari’a Supervisory Board (SSB) uses appropriate tools and approaches to detect errors and correct them immediately and submit its reports to the relevant parties including its opinion, recommendations and guidance for improvement.
The Accounting Standard No. 1 of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) states that:
The Shari'a Supervisory Board is an independent body of jurists and specialists in the jurisprudence of transactions, it may include a member of non-jurists who is specialist in the field of Islamic financial institutions and has knowledge of the jurisprudence of transactions. The Shari'a Supervisory Board is entitled to guide the activities of the institutions and supervise their investment operations to ensure compliance with the provisions and principles of Islamic law, and its fatwas and decisions are obligatory to the institution).
- Purpose of Shari'a Supervision:
Shari'a supervision aims to ensure that the activities carried out by the Bank do not violate Islamic law. - Responsibility of compliance with Shari'a:
Although Shari'a Supervisory Board is responsible for formulating and expressing opinions about the Bank's compliance with Shari'a law, it is the responsibility of the Bank's management to be responsible for compliance with Shari'a. The Bank's management is also responsible for providing the Shari'a Supervisory Board with all information related to this obligation, and removing all constraints that limit the performance of Shari'a supervision to its functions described in the above paragraph.
- Structure of Shari'a Supervisory Board
The Shari'ah Supervisory Board (as set out in the Bank's Articles of Association) consists of at least three members and at most seven members of the Shari'a scholars appointed by the General Assembly of Shareholders for a period of three years and their remuneration is determined in the appointment decision. It is possible to reappoint those who have completed membership period. In the case of the vacancy of a member position before the end of the term, the Board of Directors may appoint a replacement for the end of the period. - Current Members of Shari'a Supervisory Board:
Professor, Khalifa Babeker Al Hassan Head of Islamic Law Department, Faculty of Law, University of Khartoum | Chairman |
Professor Mohamed Elfatih Hamid Professor of Law - University of Khartoum | Member |
Professor, Abdul Rahman Siddiq Dafa' Allah Head of Islamic Law Department, University of Khartoum | Member |
Professor, Ahmed Mohamed Abdulmageed | Member |
Mr.Ali Abdul Basset Ahmed Al Haj A former bank general manager and former Finance Minister | Member |
Mr.Mamoun Bashir Mohammed Bashir | Shari'a Advisor Office |
- Responsibilities of the Shari'a Supervisory Board:
1. To cooperate with the Bank's officials in drafting contracts, agreements and operations related to all transactions of the Bank with shareholders, investors and third parties, and in the amendment and development of the mentioned models, when necessary, and in the preparation of contracts that the Bank intends to make, to ensuring that such contracts, agreements and processes are in compliance with Shari'a principles.
2. To express the opinion from Islamic law perspective on the Bank's transactions referred to it by the Board of Directors or the CEO.
3. To provide the advice to the Board of Directors in any matter related to the Bank's transactions.
4. Review the operations of the Bank to verify the implementation of the requirements of the previous items (1, 2, 3).
5. The Shari'a Supervisory Board periodically submits its reports and observations to the Board of Directors and the CEO.
6. The Shari'a Supervisory Board submits annual report to the General Assembly of Shareholders including its opinion on the extent to which the Bank is in compliance with the provisions of the Shari'a and any comments it may have in this regard.
7. The Supervisory Board undertakes its responsibilities in accordance with the proposed regulations based on which the General Assembly of Shareholders issues a resolution. The Chairman of Shari'a Supervisory Board or his Deputy may attend the shareholders' general assembly meetings.
8. The Shari'a Supervisory Board may include any subject in the agenda of any meeting of the General Assembly, discuss it at the meeting and participate in its deliberations without having a vote when issuing the resolutions.
