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Annual Report 2023
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Annual Report 2023
Sharia Supervisory Board Members
His Eminence Dr. Alaa Razia
Chairman of the Sharia Supervisory Board

• He obtained a doctorate in Islamic law from Cairo University - Faculty of Dar Al Uloom in 2011. He is a supervisor of Islamic education, and a part-time faculty member at the College of Sharia at Hebron University. • He holds international scientific and professional certificates in the jurisprudence of Islamic banking, including the Certified Sharia Auditor and Controller (CSAA) and the Certified Islamic Arbitrator & Expert (CIAE). He is a member of the International Zakat Organization. • He took part in several local and international scientific events and conferences in Islamic jurisprudence and its developments. • He published many books, studies and researches in the jurisprudence of transactions, the principles of jurisprudence and Sharia purposes. He is an arbitrator, expert and legal advisor in settling financial disputes.

His Eminence Prof. Maher Al Houli
Member of the Shari'a Supervisory board

• Professor in the field of Jurisprudence and its Fundamentals. Serves as the dean of the College of Sharia and Law at the Islamic University, Gaza, the head of the Sharia Fatwa Department at the Association of Palestine Scholars, the chairman of the Fatwa board at the Islamic University, Gaza, the president of Al Quds Association for Research and Islamic Studies, and the dean of Student Affairs. He has also carried out Sharia and financial arbitration. • Supervises masters and doctoral theses and holds a scientific research award - the Islamic Studies Series for the year 2008. • Has published many books and scientific literature which are used at universities for undergraduate and master's degree studies and has published many varied and published scientific research papers.

His Eminence Dr. Ayman Jweleis
Member of the Sharia Supervisory Board

• He obtained a doctorate in Islamic law from Cairo University - Faculty of Dar Al Uloom in 2011. He is a supervisor of Islamic education, and a part-time faculty member at the College of Sharia at Hebron University. • He holds international scientific and professional certificates in the jurisprudence of Islamic banking, including the Certified Sharia Auditor and Controller (CSAA) and the Certified Islamic Arbitrator & Expert (CIAE). He is a member of the International Zakat Organization. • He took part in several local and international scientific events and conferences in Islamic jurisprudence and its developments. • He published many books, studies and researches in the jurisprudence of transactions, the principles of jurisprudence and Sharia purposes. He is an arbitrator, expert and legal advisor in settling financial disputes.

Sharia Supervisory Board

A specialized board of Sharia scholars which is elected by the Bank's general body. Sharia supervision is a prominent and distinctive feature of the Palestine Islamic Bank’s activities controlling and developing the Bank’s business in accordance with Sharia’s provisions and ensuring that the Bank's business and activities are carried out in accordance with the principles of Islamic Sharia.

Sharia Supervisory board References
  • The decisions, directives and circulars approved and issued by it.
  • The decisions, directives and circulars approved and issued by Higher Sharia Supervisory Board
  • The standards of the Accounting and Auditing Organization for Islamic Financial Institutions in Bahrain.
  • Decisions, fatwas, and recommendations of seminars, councils and juristic forums are considered and approved by the Bank's Sharia Supervisory Board in relation to the Bank’s operations.
Scope of the Sharia Supervisory board

The Board has the right to fully access, without restrictions, all records, transactions and information, including those of the Bank’s employees and consultants. The board relies on the instructions of the Palestinian Monetary Authority according to banking law and sharia standards and the rules and best practices for the governance of banks in Palestine issued by the Palestinian Monetary Authority.

The decisions of the Board within its purview, and which do not contradict with the powers of the Supreme Sharia Supervisory Board founded by the Palestinian Monetary Authority, are obligatory on the Bank. In this regard, the decisions of the Board on the Bank’s transactions and activities are enforceable.

Tasks of the Sharia Supervisory Board
  • Directing, monitoring and supervising the Bank’s business and activities to ensure compliance with Islamic Sharia.
  • Ensuring that there is a sound and effective internal Shari'a supervisory system that ensures the application of Islamic Sharia.
  • Examining the Bank’s compliance with the provisions of Islamic Sharia in all its activities.
  • Providing guidance and training to the Bank's employees on compliance with Islamic Sharia.
  • Expressing opinions on the extent of the Bank’s commitment to the provisions of Islamic Sharia and publishing them before the Bank’s general assembly and in its annual report.
Working mechanism of the Sharia Supervisory president:
  • The Board meets at the invitation of its chairman or at the invitation of the Bank management when necessary.
  • The Board holds twelve regular meetings a year, one meeting each month.
  • The Board receives enquiries from the executive management and from the Bank’s branches through the Bank’s Sharia Auditing Department, and it duly responds to them.
Sharia Auditing

The Shari'a Auditing department is one of the Bank's important supervisory departments, and it follows the work of the Shari'a Supervisory Board appointed by the Bank’s general authority. It is independent from the executive management in performing its work and has the right to view all documents, contracts, agreements, models and policies of the Bank with full support from the Board of Directors, executive management, and the Sharia Supervisory Board in order to achieve the Bank's goals and avoid risks in accordance with the Sharia and approved governance standards.

Main objectives of the Sharia Auditing Department:
  • Verifying that the Bank’s management has fulfilled its responsibilities towards implementing the provisions and principles of Islamic Sharia in accordance with the approved Sharia standards.
  • Verifying the suitability, adequacy, and effectiveness of the internal Sharia control system.
  • Verifying that any activity, product, service, or contract carried out by the Bank is authorized by the Sharia Supervisory Board.
  • Achieving the integrative supervisory role with other supervisory departments with the aim of achieving an effective regulatory system.
Tasks of the Sharia Auditing Department:
  • Reviewing the instructions and work procedures issued by the Bank’s management in light of the Sharia’s Supervisory Board decisions.
  • Preparing for the regular meetings of the Board and following up the implementation of its decisions and recommendations.
  • Carrying out field Sharia audit tours on a regular basis and submitting audit reports to the Sharia Supervisory Board.
  • Participating with the Board in scientific meetings and seminars and communicating with the public effectively.

Preparing the Department's business plan annually, revising work instructions and procedures and seeking approval of them by the Sharia Supervisory Board, which in turn evaluates the performance of the Department and its employees within the approved annual plan.

Sharia Supervisory Board Report for the year 2023

Presented to shareholders of Palestine Islamic Bank:

May the peace and blessings of Allah be upon you,

In accordance with the letter of assignment received from the General Assembly of Palestine Islamic Bank, we have monitored the principles used and contracts related to transactions and applications offered by the Bank during the fiscal year from 1/1/2023 to 31/12/2023, and we have conducted due monitoring to express our opinion on whether the Bank has complied with the provisions and principles of Islamic Sharia as well as the specific fatwas, decisions and guidelines issued by us.

We carried out our observation, which included examining the documentation and procedures used by the bank on the basis of testing each type of operation on the basis of the selected sample, making observations about it and verifying its compliance with the approved Sharia principles.

We have planned and carried out our monitoring in order to obtain all the information and explanations that we have deemed necessary to provide us with sufficient evidence to give reasonable assurance that the Bank has not violated the provisions and principles of Islamic Sharia.

The Bank's management is responsible for carrying out the Bank's business in accordance with the provisions and principles of Islamic Sharia and the responsibility of the Sharia Supervisory Board is to form an independent opinion after carrying out the required review and monitoring to submit the following report to you:

First: The Board reviewed the bank's implemented work during the period from 1/1/2023 to 31/12/2023

Second: The Board answered all questions and inquiries referred to it by the Bank's management during the mentioned period.
 

Third: The Board added its observations and corrections to the transactions, agreements and work forms presented to it.

Fourth: The Board reviewed and discussed the Sharia audit reports on the branches and offices submitted by the Sharia Audit Department and submitted its recommendations and observations, noting the existence of a number of repeated observations on the financing work in some branches. The Board issued directions to avoid repeating these observations in the future.

Fifth: The Board approved and reviewed a set of sponsorship and cooperation agreements with various companies and institutions, where the Board approved the following:

  • Distribution of depositor profits for the second period of the year 2022.
  • Sharia Audit Department Report for the fourth quarter of 2022.
  • The Board’s annual report for the year 2022 addressed to shareholders.
  • Approving the financial statements for year 2022.
  • Approving the mechanism for disbursing the amounts available in the non-Sharia compliant proceeds fund.
  • Distribution of depositors' profits for the first period from 1/1/2023 to 30/6/2023.
  • The Sharia Supervisory Board issued its semi-annual report on the Bank's business for the period from 1/1/2023 to 30/6/2023 and it was duly approved by the Chairman and members of the Board.
  • Update to the investment policy.
  • The Bank's semi-annual financial statements.
  • Wages and Services Bulletin (ninth and tenth versions).
  • BNY Mellon's Global Banking Agreement
  • Updating the Sharia Audit Unit Procedures Manual (Second version).
  • Update the information security policy.
  • Emergency program based on instructions no. 13/2023 of the PMA.
  • Report of the Board of Directors on the Bank's work for the period from 1/7/2023 to 14/12/2023.
  • In addition to approving a set of contracts, campaigns, programs and agreements that were presented to the Board during the mentioned period.

In our opinion:

  • Upon the review of the Board of contracts submitted to it and after making the necessary amendments thereto, the contracts, operations and transactions concluded by the Bank during the said period under review were concluded in accordance with the provisions and principles of Islamic Sharia.
  • No profits related to transactions carried out to the non-Sharia compliant proceeds fund were transferred during the reporting period.
  • All profits achieved from sources or in ways prohibited by Islamic Sharia or found by the Board to be in violation of Sharia standards, fatwas and Sharia rulings have been placed in the non-Sharia compliant fund to be disbursed for charity purposes as per the recommendations of the Sharia Supervisory Board.
  • The Bank shall abide by the decisions issued by the Supreme Sharia Supervisory Board.
  • There is no objection to adopting the means chosen by the Board of Directors to have each shareholder pay their Zakat by themselves. The percentage of Zakat due on shares, which amounted to (5.18%) for each share has been accounted for, provided that the shareholders are notified of this. The Board calls on everyone to perform the obligation of Zakat in accordance with Sharia provisions, and to pay their Zakat themselves.

The Sharia Supervisory Board thanks the PIB’s customers and shareholders for their trust, and PIB’s management and employees for their good cooperation with the Board. May Allah reward them all with a fair reward.

 

Allah is the guide to the right path

Ramallah 12/8 1445 AH corresponding to 22/2/2024 AD

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