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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

How should a person who is afflicted with continued major ritual impurity (incontinence of urine, bleeding outside the monthly period) perform ablution?

Such a person should make ablution for every prayer after its due time and after removing impurities from their body and outfit, and should place a fresh diaper whenever needed so as for the impurity not to spread out. They should also perform prayer immediately even if incontinence of urine continued, and should repeat the aforementioned for every obligatory prayer, then perform optional prayer as much as they want.

What should one do if they see someone deliberately eating or drinking openly during Ramadan?

They must enjoin what is right and forbid what is wrong. If they fear harm from that person, they should disapprove of it in their heart but avoid sitting with them if possible. It is also preferable to seek the help of the authorities to prevent them from doing so.

What is the ruling on a person in a state of major impurity (junub) or a menstruating woman (ha'id) reciting the Quran from memory?

It is not permissible for a menstruating woman, a postpartum woman, or a person in a state of major impurity to recite anything from the Quran, whether from memory, from the Quran, from a phone, or a computer. It is also not permissible for them to touch the Quran, based on what was reported from Ali bin Abi Talib that the Prophet (peace be upon him) was not prevented from anything regarding the Quran except major impurity (janabah). (Reported by al-Tirmidhi who said it is a hasan sahih hadith). Menstruation and postpartum bleeding are analogous to major impurity (janabah) as they are all major impurities (hadath akbar).
For those mentioned, it is permissible to mention Allah and supplicate even with verses from the Quran, provided they do not intend them as recitation of the Quran, but intend them as remembrance (dhikr) or supplication (du'a). And Allah the Almighty knows best.

What is the ruling on eating from one`s Udhiyah?

In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
The Udhiyah (sacrificial offering) is divided into two categories: the vowed sacrifice (Al-Mandhurah) and the voluntary sacrifice (Al-Tatawwu').
 
First: The Vowed Sacrifice (Al-Mandhurah)
This refers to a sacrifice that has become strictly obligatory due to a formal vow (Nadr). It is completely impermissible for the person offering it, or any members of their family whom they are financially obligated to maintain, to eat any of its meat or fat. Furthermore, it is unlawful for them to personally benefit from its hide, wool, or any other part of it. If they happen to eat any portion of it, the offerer is legally obligated to give an equivalent amount of meat or its monetary value to charity. (As noted in Tuhfat al-Muhtaj by Imam Ibn Hajar al-Haytami,Vol. 9/P.364).
 
Second: The Voluntary Sacrifice (Al-Tatawwu’)
This is a recommended, non-obligatory sacrifice. The person offering it is fully permitted to eat from its meat, distribute portions as charity to the poor, and give pieces as gifts to those who are well-off. However, it remains a mandatory requirement to donate at least a minor portion of it to charity; this should not be less than approximately half a kilogram of raw, uncooked meat. And Allah the Almighty Knows Best.

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