Audit and Compliance Activities

The compliance and control of the implementation of our products, as described herein, with the Principles and Standards of Interest-Free Banking (Participation Finance) are carried out jointly by our Bank's Audit Units and the Advisory Committee Secretariat assigned by the company providing advisory services on interest-free banking.

In accordance with the Communiqué on Compliance with Interest-Free Banking Principles and Standards issued by the Banking Regulation and Supervision Agency (BDDK), the Audit Units and the Advisory Committee Secretariat present a report on compliance activities to the Audit Committee at least once a year. This report is subsequently submitted by the Audit Committee to the Bank's Board of Directors.

The Audit Committee holds at least two meetings annually to discuss reports on compliance and audit activities related to interest-free banking and the actions taken regarding the findings presented in the reports.

In line with the provisions of the relevant regulations, meetings are held with the Advisory Committee at least once every three months with the participation of relevant units when it is necessary or agenda-related. Questions and suggestions are resolved during these meetings, and the decisions made are communicated to all relevant employees within the Bank. This ensures that practices align with the decisions taken by the Advisory Committee. Outside of regular meetings, real-time communication is maintained between the relevant units and the Advisory Committee, allowing for immediate responses to transaction-based or ad hoc inquiries.

The policies and procedures governing our Bank's compliance with the Principles and Standards of Interest-Free Banking are submitted for approval by the Board of Directors after obtaining the Advisory Committee's opinion.