Emirates NBD Bank : تنويه من الشركة

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Annual Report of the Internal Shari'ah Supervision Committee of Emirates NBD - Islamic

Issued on: 16/01/2022

To: Shareholders of Emirates NBD PJSC

After greetings,

Pursuant to requirements stipulated in the relevant laws, regulations and standards (the "Regulatory Requirements"), the Internal Shari'ah Supervision Committee (the "ISSC") of the Islamic Window of Emirates NBD PJSC Group (the "Institution") presents to you the ISSC's Annual Report regarding Shari'ah compliant businesses and operations of the Institution for the financial year ending on 31 December 2021.

1. Responsibility of the ISSC:

In accordance with the Regulatory Requirements and the ISSC's charter, the ISSC's responsibility is stipulated as to:

1. undertake Shari'ah supervision of all businesses, activities, products, services, contracts, documents and business charters of the Institution; and the Institution's policies, accounting standards, operations and activities in general, memorandum of association, charter, financial statements, allocation of expenditures and costs, and distribution of profits between holders of investment accounts and shareholders ("Institution's Activities") and issue Shari'ah resolutions in this regard.
2. Determine Shari'ah parameters necessary for the Institution's Activities, and the Institution's compliance with Islamic Shari'ah within the framework of the rules, principles, and standards set by the Higher Shari'ah Authority ("HSA") to ascertain compliance of the Institution with Islamic Shari'ah.

The senior management is responsible for compliance of the Institution with Islamic Shari'ah in accordance with the HSA's resolutions, fatwas, and opinions, and the ISSC's resolutions within the framework of the rules, principles, and standards set by the HSA ("Compliance with Islamic Shari'ah") in all Institution's Activities, and the Board bears the ultimate responsibility in this regard.

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2. Shari'ah Standards:

In accordance with the HSA's resolution (No. 18/3/2018), and with effect from 01/09/2018, the ISSC has abided by the Shari'ah standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) as minimum Shari'ah requirements and did not deviate from the standards, in all fatwas, approvals, endorsements and recommendations, relating to the Institution's Activities.

3. Duties Fulfilled by the ISSC During the Financial Year:

The ISSC conducted Shari'ah supervision of the Institution's Activities by reviewing those Activities, and monitoring them through the internal Shari'ah control department and the presented Shari'ah audit reports, in accordance with the ISSC's authorities and responsibilities, and pursuant to the Regulatory Requirements in this regard. The ISSC's activities included the following:

1. Convening (4) meetings during the year.
2. Issuing fatwas, resolutions and opinions on matters presented to the ISSC in relation to the Institution's Activities.
3. Monitoring compliance of what was presented of policies, procedures, accounting standards, product structures, contracts, documentation, business charters, and other documentation submitted by the Institution to the ISSC for approval.
4. Ascertaining the level of compliance of allocation of expenditures and costs, and distribution of profits between investment accounts holders and shareholders with parameters set by the ISSC.
5. Supervision through the internal Shari'ah control department and the presented Shari'ah audit reports, of the Institution's Activities including supervision of executed transactions and adopted procedures on the basis of samples selected from executed transactions, and reviewing reports submitted in this regard.
6. Providing guidance to relevant parties in the Institution - to rectify (where possible) incidents cited in the reports prepared by internal Shari'ah control Department and the presented Shari'ah audit reports - and issuing of resolutions to set aside revenue derived from transactions in which non-compliances were identified for such revenue to be disposed towards charitable purposes.
7. Approving corrective and preventive measures related to identified incidents to preclude their reoccurrence in the future.
8. Communicating with the Vice Chairman of the Board as authorized by the Board, and the senior management of the Institution (as needed) concerning the Institution's compliance with Islamic Shari'ah.

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