Current Legal Issues
- BANKING AND FINANCIAL SERVICE
There are two kinds of bank business:
- The first is haraam.
This may cover the type that relates to transactions leading to
usury, such as acting as an agent in handling, registering, acting
as witness, receiving excess money [interest] on behalf of the owner
and the like. Of the same nature are transactions pertaining to
companies involved in usury or the merchandise of alcoholic drink,
be it sale of their shares, the opening of letter of credit or
All this sort of work is haraam. It is not permissible to be
involved in it and those working in it are not entitled to wages in
return for the work they do.
- The second kind is that which does not involve interest. It is
permissible to take part in it and receive wages thereof.
- (29) If, in the usury transaction, the party paying the
interest is an unbeliever, be it a foreign bank or other, it is, as
explained earlier on, permissible for a Muslim to take. Accordingly,
it is permissible to deal in such work, which is linked to carrying
out such usury transactions within the banks and outside them.
- (30) In some cases, some of the money, deposited with either
state owned or national bank in Muslim countries is considered among
money of majhoulil
malik, needs consultation with the Marji’
to having the right of disposal over it. There is, therefore, ishkal
in working for the bank and getting involved in either receiving
from or delivering such money to bank customers, from those who
might have the right of disposal over it without a license from the Marji’
to make it good.
- (31) The validity of ji’aala,
ijarah, and money order and similar dealings with state banks in
Muslim countries is dependant on the license of the Marji’.
It is not in order without his permission.