Q.1. A Muslim in Canada works in a bank where his job involves providing capital for clients to ensure that they can carry out their projects. All such deals involve interest. Is such work permissible in Islam? If not, does it mean that working in a bank or a financial institution is forbidden?
Q.2. A certain person helps his poor relatives and friends, and also supports mosques and Muslim centers engaged in social work and providing services for poor people. Does this count as paying his zakah?
Mazhar Khan
A.1. Much of the work banks do is interest-based, especially in the West where interest is accepted as an essential element of national economy. Hence, the rate of interest is normally fixed by the central bank that takes into consideration several factors. A number of scholars are of the view that interest cannot be equated with usury, not in all cases at any rate. They point out differences and some of their arguments are sound and valid. However, the majority of scholars continue to consider interest as another version of usury. Hence they consider any dealing that is based on interest to be forbidden.
The prohibition of usury is one of the strictest in Islam. The Prophet says: "God curses the person who devours usury, the one who pays it, the clerk who writes the contract between them and the two witnesses to that contract." In the Qur'an God gives a stern warning that any community that does not stop usury shall be at war with God and His Messenger. There can be nothing more fearsome. Therefore, it is far better that one should not be involved with usury in any capacity.
When a person works for a bank, he should try to work in such areas that do not involve interest. If he cannot do so, then he should try to find a job outside banking. He does not need to quit his job before finding a new one. In fact he should stay, but he should be seriously looking for another job.
A.2. The payment of such money qualifies as zakah only if two conditions are met. The first is that the person making the payment intends such donation as payment of zakah, because every action is credited on the basis of the intention behind it. The Prophet says: "Actions are but by intentions. Each person shall have only what he intends his action for." So, without formulating a clear intention that one is making a particular payment as part of his zakah liability, the payment cannot count as zakah. The other condition is that the recipients or the purposes for which payment is made qualify as beneficiaries of zakah. God has defined eight classes of people and actions for which zakah should be paid. No other person or purpose can be funded by zakah money. These beneficiaries are outlined in the verse that says: "Charitable donations are only for the poor and the needy, and those who work in the administration of such donations, and those whose hearts are to be won over, for the freeing of people in bondage and debtors, and to further God's cause, and for the traveler in need. This is a duty ordained by God, and God is All-Knowing, Wise." (9: 60)
So, when you need to calculate your zakah next time, it is advisable if you make out a list of the people and the purposes where you wish to spend it. Whatever you donate beyond that will be highly rewarded, God willing, but it will be sadaqah or charity, and you can pay it to anyone or any good purpose you choose.
By Adil Salahi
© Arab News 2005
