The Riba Banks: The Decision of the Figh Academy

Verily, the meeting of the Council of the Islamic Fiqh Academy in its 9th session was held in the building of the Muslim World League in Makkah Al-Mukarramah during the period from Saturday, the 12th of Rajab, in the year 1406 AH, to Saturday, the 29th of Rajab, in the year 1406 AH. The matter of the spread of Riba transactions, and the people dealing in them, and the lack of abundant substitutes for them, was looked into. This is the matter that was sent to the Committee by his Excellency, the Doctor, the Secretary General and the Assistant of the President of the Committee.

The Committee listened to the statement of the leading members concerning this dangerous issue that is a commission of that which is clearly forbidden, and its forbiddance is confirmed by the Book, the Sunnah and the consensus (Ijma') of the scholars.

Indeed the modern economical researchers have confirmed that Riba is a danger to the economy of the world, its politics, its mannerisms and its security, and it (Riba) is behind many of the crises that the world is facing. There is no salvation from this except by uprooting this wicked disease that Islam has prohibited since 14 centuries. Then, the blessed course of action is to establish Islamic sources of exchange that are free of Riba and abolish the dealings that are prohibited by the Islamic law.

With this is rejected the call of the secularists and the victims of the educational attack who claimed that applying the Islamic law in the area of economics these days is impossible. They claim this saying that there can be no economy without banks, and no banks without interest gains (i.e., Riba). Likewise what was reported in the decision is the following:

Firstly: It is obligatory upon all of the Muslims to avoid what Allâh has prohibited of dealing in Riba, whether it is taking it or giving it. They must avoid assisting it in any form or fashion.

Secondly: The Committee looked with a pleasing eye at establishing Islamic sources of exchange as a legislated sub- stitute for the sources of exchange that deal with Riba. The Committee thinks that it is necessary to spend on establishing these sources of exchange in all of the Islamic lands and wherever the Muslims have societies outside of the Islamic lands. This is so that a strong net can be made from these sources of exchange that will be in the form of a complete Islamic economy.

Thirdly: It is forbidden for every Muslim who is able to deal with the Islamic source of exchange to deal with the Riba based sources of exchange, whether inside the Islamic lands or outside of them. This is because there is no excuse for him in dealing with them after the Islamic substitute is present. It is obligatory upon him to seek to exchange the evil with the good, and suffice himself with the lawful instead of the forbidden.

Fourthly: The Committee invites those responsible in the Islamic lands and those in charge of the Riba based sources of exchange in the Islamic lands to make serious haste to purify the Islamic lands from the filth of Riba.

Fifthly: All wealth that comes by way of Riba (interest) gains is Islamically forbidden wealth. It is not permissible for the giver (the person who deposited the money) to benefit from it for himself or anyone else from those who are under his dependency in any of the matters. It is obligatory that he should use this money (leftover interest) for the public benefits of the Muslims, such as schools, hospitals and so forth. This is not from the matter of charity (Sadaqah). Rather, it is only from the matter of purifying the wealth from what is forbidden.

It is not permissible in any case to leave these interest sums for the Riba banks to become stronger with, and the sin increases in that in reference to the banks that are outside of the Islamic lands, for usually they give this extra money to the Christian missionary and Jewish establishments. In this way the wealth of the Muslims nourishes the weapons of war against the Muslims and the misguiding of their children away from their beliefs. This while knowing that it is not permissible to continue dealing with these Riba banks, whether there is an interest gain or not.

Likewise, Committee requests those in charge of the Islamic sources of exchange to select righteous Muslim elements to work with them in the area of explaining and informing of the laws of Islam and its etiquettes so that their dealings and transactions will be in agreement with those laws.

Allah gives success and He is the Guide to the right path.