Hong Leong Islamic Bank – Shariah Compliance Risk Management

This function is undertaken by Risk Management Department, with the following mandates:
 

• Develop and continuously enhance the Shariah Compliance Risk Management Framework and other risk management policies and procedures relevant to Islamic banking business. This includes customizing relevant Group policies for HLISB implementation
  
  
• Responsible together with the Regulatory Compliance department as the second line of defense in providing independent oversight to ensure compliance to Shariah related regulatory guidelines.
  
  
• Facilitate risk assessment and control effectiveness assessment (with focus on risks that are unique to the Islamic Banking especially Shariah Compliance risk) during new business, products or service development and launching as part of the HLISB’s PEAC process. Continuous monitoring of risk profiles and controls effectiveness to facilitate efficient and effective management of Islamic banking business risks and Shariah non-compliance risks as well as ensuring HLISB stays within the risk thresholds set out in the annual Risk Appetite Statements
  
  
  

Facilitate introduction of new controls which are deemed better in minimizing the Islamic banking business risks and Shariah non-compliance risks

• Track rectification status of Shariah non-compliant events.
  
  
• Track purification status of  non-permissible income through income de-recognition
  
  
• Provide timely and independent reporting and escalation of key risks and controls issues to the BARMC, HLISB Shariah Committee and senior management
  
  
• Responsible together with the Head of Shariah Division as reporting officer on Shariah non-compliant event reporting to BNM.
  
  
• Engage regular communication with other internal Shariah compliance functions to ensure timely sharing of information and proper coordination to handle any emerging Shariah compliance matters.