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 similar work.
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
(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 jiaala,
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