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Resolutions of Iftaa' Board

"resolution No.(307): "Organized Banking Tawarruq is Forbidden from the Perspective of the Higher Objectives of Sharia"

Date Added : 09-01-2022

Resolution No.(307)(15/2021): By The Board of Iftaa', Researches and Islamic Studies:

"Organized Banking Tawarruq is Forbidden from the Perspective of the Maqasid of Sharia"

Date: (25th of Jumada Al Oula, 1443 AH), corresponding to (30/12/2021 AD).

 

In the name of Allah, Most Gracious, Most Merciful

All perfect praise be to Allah, the Lord of the Worlds; may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.

On its sixteenth meeting held on the above date, the Board of Iftaa`, Research, and Islamic Studies reviewed the issue of organized banking Tawarruq* or what is sometimes called "Personal Finance" offered by some Islamic banks.

After careful consideration, the Board decided the following:

Unlike conventional banks, Islamic banks rest on meeting the Maqasid of Sharia (The higher objectives of Sharia) as well as observing its rulings. For this, their transactions, in essence, are based on supporting the real economy and applying the methods of investment, which comply with the rules of Sharia.

From the perspective of Sharia, in contracts, intentions and meanings, not words and structures, as well as outcomes shall be taken into consideration, so dealing with organized banking Tawarruq is prohibited  based on the maxim "Prohibition of what may lead to sins", which is, in this case, Riba (Usury/interest). This is in addition to emphasizing that the difference between Islamic and conventional banks isn`t a mere difference of form. Moreover, this Tawarruq will have a negative impact of the Islamic economy because there is no real growth nor rotation of the economic sectors; consequently, many Fiqh academies, Fatwa houses, and the majority of the scholars issued Fatwas prohibiting organized Tawarruq.

During its 19nth meeting/2009 AD, the International Islamic Fiqh Academy issued a resolution prohibiting the organized banking Tawarruq or what is called "The Personal Financing." The reason for this is that there is explicit, implicit, or customary collusion between the financier (Bank) and the customer whereby the latter gets instant cash for a higher amount that he/she owes to the bank, and this is usury per se. We can add that this has been confirmed by the Iftaa` Board of Jordan through Resolution No.(3/2012) which considered organized Tawarruq as a form of circumventing Riba because the real objective is obtaining instant money in return for paying extra amount to the bank.

In conclusion, we confirm this Resolution and rule that Islamic banks must abide by the Sharia-compliant investment methods that achieve the higher objectives of Sharia. And Allah The Almighty Knows Best. 

 

 

Chairperson of Iftaa` Board,

Grand Mufti of Jordan,

Dr. Abdulkareem al-Khasawneh

Dr. Mohammad al-Khalayleh

Prof. Mahmoud al-Sartawi/ Member

Dr. Majed al-Darawsheh/ Member

Sheikh Sa`eid Al-Hijjawi, Member

Judge Samer Al-Khobbaj/ Member

Prof. Adam Nooh Al-Qhodaat/Member

Prof. Amjad Rasheed/Member

Dr. Jamil Khatatbeh/Member

Dr. Ahmad al-Hasanat/ Member

Dr. Mohammad Younis Al-Zou`bi/ Member

 

 

* Tawarruq means a sale contract in which the buyer obtains merchandise on credit and then sells it at a loss to the original seller for cash. And Allah Knows Best

 

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Summarized Fatawaa

The Jurisprudential Significance of the Ḥadīth: "Whoever says, at the conclusion of the Fajr Prayer, while crossing his legs, before speaking..."
"Whoever says, at the conclusion of the Fajr prayer, while crossing his legs, before speaking: 'Lā ilāha illā Allāh, waḥdahu lā sharīka lah, lahu al-mulku wa lahu al-ḥamdu yuḥyī wa yumītu wa huwa ʿalā kulli shayʾin qadīr' ten times — ten good deeds will be recorded for him, ten bad deeds will be erased from him, he will be raised ten levels, he will spend that day in protection from everything disliked and guarded from the devil, and no sin will be able to befall him on that day except associating partners with Allah" — does this noble ḥadīth apply to the imam, and what is meant by "extraneous speech"?

All praise is due to Allah, and peace and blessings be upon our master the Messenger of Allah ﷺ.
It is recommended for both the imam and those praying behind him to recite, immediately after the final salām, the specific remembrance reported in the sunnah to be said before turning away from one's place of prayer. The imam then leaves his praying spot, and the act of "turning" is fulfilled when the imam faces the congregation — even without physically leaving his spot — by positioning his right side toward them and his left side toward the qiblah, and this applies even while he is engaged in supplication.
Al-ʿAllāmah Ibn Qāsim al-ʿAbbādī states in his Ḥāshiyah ʿalā al-Tuḥfah (Vol.2/P.105): "It is most virtuous for the imam, once he has given the salām, to rise from his place of prayer immediately afterward." He adds that an exception must be made for the remembrances that are specifically required to be recited before he turns away. He then notes, citing Sharḥ al-ʿUbāb: "Yes, an exception to this rising immediately after the salām applies to the Fajr prayer, due to the authentic report that the Prophet ﷺ, when he prayed Fajr, would remain seated until the sun rose." He further cites, from al-Khādim, the ḥadīth concerning one who recites, at the conclusion of the Fajr prayer while still in the position of crossing his leg to rise: "Lā ilāha illā Allāh, waḥdahu lā sharīka lah..." and the rest of the well-known ḥadīth. He comments that this makes explicit that this particular remembrance is to be recited before the worshipper turns his legs to leave, and the same applies to Maghrib and ʿAṣr, as reported in those contexts as well.
What is meant by "speech" in the relevant ḥadīth is extraneous worldly speech that is not called for after the prayer and for which there is no legitimate excuse. The remembrances reported to be recited upon concluding the prayer, however, do not fall under this category of extraneous speech, since they are themselves required by the sharīʿah.
Al-ʿAllāmah ʿAlī al-Shabrāmalsī states in his Ḥāshiyah ʿalā al-Nihāyah (Vol.1/P.551): "If someone greets a person with salām while he is occupied with reciting this remembrance [i.e., 'Lā ilāha illā Allāh...'], should he return the greeting — without this causing him to forfeit the promised reward, since he is engaged in an obligatory matter — or should he delay returning the greeting until he finishes, this being a legitimate excuse for the delay?" He continues: "I say: the more likely view is the former, and the prohibition on speech is to be understood as applying to extraneous speech for which there is no legitimate excuse. Based on this, should the worshipper give precedence to this remembrance ('Lā ilāha illā Allāh...') or to reciting Sūrat al-Ikhlāṣ ('Qul huwa Allāhu aḥad')? This requires consideration, though it is not unlikely that the remembrance takes precedence, given that the Lawgiver urged hastening to it through his words 'while crossing his leg.' This is not considered ordinary speech, since it is not extraneous to what is required after the prayer."
Accordingly, it is recommended for both the imam and those praying behind him to recite this remembrance and to give it precedence over the other remembrances of the prayer, ensuring it is said before they move from their place. And Allah the Almighty knows best.

When does the time for the Fajr prayer begin?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
The time for the Fajr prayer begins once the Mu’adhin starts the second Adhan (Al-Adhan al-Thani), and not after the first Adhan. And Allah the Exalted knows best.

What is the Islamic ruling on eating from the 'aqīqah?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
It is recommended (mandūb) to eat from the 'aqīqah, unless it was vowed (mandhūrah). If the 'aqīqah was made as a vow, then it is prohibited to eat from it, and it becomes obligatory to distribute the entirety of it in charity to the poor. And Allah Almighty knows best.

Is it permissible for a person to give the Zakah (obligatory charity) to his daughter-in-law?

Yes, it is permissible for a person to give the Zakah to his daughter-in-law if she was poor, and none provided for particularly by whom are obliged to provide for her. And Allah Knows Best.

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