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In this instance where my ultimate goal is to work in Islamic Finance would it be permissible for me to work for a non shariah compliant bank/investment company?

Answered as per Hanafi Fiqh by Askimam.org

I am currently working for an investment company, mainly dealing in administration of pension schemes.  This does sometimes involve working out interest owed on loans or borrowings and also administrating their investments in non shariah compliant products.  Although I do not provide any advice at all, merely carry out there instructions and ensure they adhere to the regulations.  Is this Job Permissible?

Finally i am doing this job whilst studying for some qualifications with an ambition to study in Islamic Finance before working in the Islamic finance sector.  However I have found that not many Islamic finance specialist companies would take on, someone like me who has a lack of experience in the banking and finance arena.  Thus in order to get this experience I would need to possibly work for a year or 2 for a traditional UK bank or Investment Company to gain this experience even though I would have the Islamic finance qualifications.  I am prepared to go to the Middle East where they do take on junior staff, but again it is very difficult as they are more likely to take on their own national first. 

In this instance where my ultimate goal is to work in Islamic Finance would it be permissible for me to work for a non shariah compliant bank/investment company?

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

1. 

Interest is explicitly prohibited in Shariah.  Allah Ta’ala says:

الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ (البقرة)

Those who devour usury shall not rise on Judgment Day, except as one rises who Satan has battered with touch of madness.  That is because they say, “Indeed, selling is just like usury”, while Allah has made selling lawful and has prohibited usury.  So when an admonition comes to one from his Lord, and he quits usury, then to him belongs what was formerly gained.  And his affair henceforth rest with God.  But whoever returns to usury then these are the Companions of the Fire of Hell.  They shall abide therein forever.

 (Al-Baqarah 275)

Allah Ta’ala emphasizes on abstinence from interest so much so that He announces war against a person who involves himself in interest.  Allah Ta’ala says:

يَا أَيُّهَا الَّذِينَ آَمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ . فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ (البقرة)

O you who believe, fear Allah and give up what interest is left (what is still due to you) if you are believers.  If you do not (avoid interest), then be warned of war from Allah and His Rasool.  If you repent then you may have your principle amount.  Oppress not and you shall not be oppressed.  (Al-Baqarah – 278-279)

It is narrated in Sahih Bukhari:

عن سمرة بن جندب رضى الله عنه قال قال النبى صلى الله عليه وسلم رأيت الليلة رجلين أتيانى فأخرجانى إلى أرض مقدسة فانطلقنا حتى أتينا على نهر من دم فيه رجل قائم وعلى وسط النهر رجل بين يديه حجارة فأقبل الرجل الذى فى النهر فإذا أراد الرجل أن يخرج رمى الرجل بحجر فى فيه فرده حيث كان فجعل كلما جاء ليخرج رمى فى فيه بحجر فيرجع كما كان فقلت ما هذا فقال الذى رأيته فى النهر آكل الربا (صحيح البخارى)

Sumura bin Jundub (Radhiyallahu Anhu) narrates that Rasulullah (Sallalahu Alaihi Wasallam) said that I had seen in a dream last night that two persons (angels) had come to me.  They took me to a sacred land.  We went until we came upon a brook of blood, in which there was a man standing with several stones lying before him.  When the man in the brook of blood wanted to come out, a man on the bank hit him with a stone on his face which threw him back in the brook.  On inquiry, I was informed that the man in the brook of blood was a usurer. (Sahih al-Bukhari)

The Shariah demands such detachment from interest transactions that one is cursed to even be the witness or the recorder of an interest transaction.  It is narrated in Sahih Muslim:

عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء

(صحيح مسلم)

Jabir (Radhiyallahu Anhu) narrates that Rasulullah (Sallalahu Alaihi Wasallam) cursed the one devours interest, the one who facilitates it, the one who witness it and the one who records it.  He said they are all equal. (Sahih Muslim)

To assist in vice is also offensive in Islam.  Allah Ta’ala says in the Qur’an:

وَتَعَاوَنُوا عَلَى الْبِرِّ وَالتَّقْوَى وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ شَدِيدُ الْعِقَابِ

And assist one another in good deeds and piety and do not assist one another in vice and enmity. (al-Ma’eedah – 2)

It appears from your query that your responsibilities are more than just managing the records for the investment company, since you are also administrating their investments in non Shariah compliant products.  If you carry out instructions on behalf of the investment company, that is assisting in vice.  It will not be lawful for a Muslim to take up such a job.

If your responsibilities are only to manage the account records for the company, then it will be permissible.  The Jurists have explained that if a person is an accountant in which his responsibilities are to keep the company’s records in order by working out the asset and liabilities.  If he has to calculate and analyze the amounts of interest the company is involved in, he will not fall under the stern warning of the hadith, due to the fact he is not recording the actual original transaction.  He will not responsible for the transactions the company is involved in.

Takrir-e-Tirmidhi (1:39)

2.

We are pleased to hear that Muslims have great desire in getting involved in field of Islamic financing so they may assist in creating/operating Shariah compliant banks.  May Allah accept your intentions, Ameen. 

To work in a traditional bank is not permissible, since the whole system of traditional banking revolves around interest.  If you are interested in acquiring experience only, then it is possible gain such experience through internship, where one does not receive a salary.  If that is also not probable, then we advice you to keep applying for the job in Islamic finance sector and have patience.  Inshallah, Allah will make ways without being involved in an unlawful act.

And Allah knows best

Wassalam

Ml. Ehzaz Ajmeri,
Student Darul Iftaa

Checked and Approved by:

Mufti Ebrahim Desai
Darul Iftaa, Madrassah In’aamiyyah

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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