Bangladesh Bank has made it mandatory for all Islamic banks to form a Shariah Supervisory Committee, detailing the qualifications, responsibilities, and functions of its members in a newly issued guideline.

According to the circular issued on Sunday by the Islamic Banking Regulations and Policy Department of Bangladesh Bank, the new rules outline the formation of the Shariah Supervisory Committee, the appointment and removal of its members, and their duties and responsibilities.

The guideline states that if any Shariah non-compliance is identified in a bank’s operations, the bank’s board must take immediate corrective and preventive measures based on the committee’s advice. 

Decisions of the committee on Shariah-related matters will be considered final, and the board or management of the bank is obliged to implement them.

In cases of disagreement over Shariah issues between the supervisory committee and the bank’s management, executive committee, audit committee, or board, the matter must be reported to Bangladesh Bank.

Eligibility Criteria for Committee Members

Candidates seeking to become members of the Shariah Supervisory Committee must hold a bachelor’s degree from a recognised university or institution in Kamil, Dawra-e-Hadith, Islamic Studies, Islamic Economics, Islamic Finance, Islamic Banking, or Islamic Law. 

Third division results at any stage of their education will not be accepted. A PhD or equivalent higher degree will be considered an additional qualification.

Besides, candidates should have at least two years of experience in teaching, working as a Mufti, or serving on the Shariah committee of a bank. Research papers or books published on Islamic banking or economics will also be considered a qualification.

Members of the Shariah Supervisory Committee must provide a written declaration confirming that they have never been convicted of a criminal offence, are not involved in fraud or financial crime, are not loan defaulters, and do not hold any executive or profitable position in any bank or financial institution.

They also must not have any direct or indirect relationship with any business or institution with a vested interest in the bank concerned.