Auditor for Company with Bank Clients; Investor in Public Company with non-Islamic Bank

3-12-2001 | IslamWeb

Question:

I am working as an auditor for a big company and part of our clients are banks, we audit banks and other institutions and as we all know that these banks are working on interest basis. So I want your opinion about the audit of these banks and can we generalize this opinion for other institutions like casinos and lottery agencies. Question 2 is related to shares; I own a number of shares in a public company that puts the money in non-Islamic banks, knowing that the core of this company is HALAL. It is working in the telecommunication area. Please provide me with these answers ASAP.

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Answer:

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

 

Interest is considered as one of the major sins. Allah does not declare war on anyone except the people who deal in interest.

Allah Says (what means): {O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.} [Quran 2:278-279]

Also, it is confirmed that Jaabir narrated that the Prophet said “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He added: “All of them are equal in sin.” [Muslim]

Besides, the Prophet said: “Knowingly consuming a Dirham of Riba is worse for a man than committing adultery thirty-six times.” [Ahmad]

Every person who involves in this deal, even a watchman in a usury-taking institution, will be under the threat.

Allah Says (what means): {And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.} [Quran 5:2]

This ruling is general to every forbidden thing in Islam.

Therefore, my, dear brother, you should fear Allah.

Allah Says (what means): {And whoever fears Allah - He will make for him a way out And will provide for him from where he does not expect.} [Quran 65:2-3]

What you are taking from this company is lawful if it is dealing in lawful matters, like telecommunication field. If the company is taking interest on its deposits and adding it to the profit of shareholders, then a Muslim should not invest in such a company.

Allah knows best.