As promised, my thread today talks about Shariah compliance. This is part 1, while part 2 will be posted tomorrow.
PNB has always been steadfast in its commitment to ensure that all of our business dealings and activities conform to Shariah-compliant requirements.
In 2017, PNB successfully obtained the Harus (permissible in accordance with Shariah requirements) fatwa from all State Fatwa Councils (Majlis Fatwa Negeri) – following the fatwas given by Selangor and Penang in the same year.
It should be noted that the National Fatwa Council (Muzakarah Fatwa Kebangsaan) previously provided the same ruling in 2008.
These rulings essentially meant that all investments and products under ASNB’s (a wholly owned subsidiary of PNB) 14 unit trust funds (both fixed and variable) are Shariah-compliant, based on Maqasid Shariah and Siyasah Syar’iyyah principles.
For context, a fatwa is a non-binding but nevertheless authoritative legal opinion or learned interpretation that a qualified Islamic jurist or mufti can give on issues pertaining to Islamic law.
The National Fatwa Council fatwa ruling also stated although a portion of PNB’s portfolio does include elements of conventional banking (Maybank), PNB has indeed been given the exceptional role of improving the Muslim and Bumiputera socio-economic status in Malaysia.
Aligning PNB’s Shariah commitments and a recommendation by the National Fatwa Council, the company decided to establish a Shariah Advisory Committee (SAC) in 2008.
Purpose of SAC is to advise and provide guidance on Shariah compliance matters, ensuring effective implementation and best practices of Shariah principles at all times. It convenes quarterly to review and advise PNB on efforts to increase and enhance such initiatives.
SAC has 7 members with extensive experience in Islamic matters, covering Shariah compliance, Islamic banking and economics, and is chaired by Datuk Dr. Mohd. Daud bin Bakar. bit.ly/34rsuJS
Moreover, PNB has an in house Shariah Management Department which assumes the role of Secretariat to the SAC. It is headed by Dr. Ahmad Basri bin Ibrahim who manages all Islamic finance and Shariah-related matters within PNB as well as ensuring Shariah compliance of ASNB’s UTFs.
The Bahasa version of this is on another thread.
