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What is the ruling on someone who used unlawful wealth to open a business

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Abdullah was once a drug dealer who acquired wealth through the selling of illegal haram drugs. Later when he realized and came to his senses he repented. However, the money he acquired through selling drugs he invested into a halal business e.g cloth shop or newsagents etc. the last few years he has acquired his wealth solely through the halal business. What is the ruling with regards to the wealth he acquires through the halal business?


 Answer:

If someone acquired unlawful wealth due to a haraam transaction such as selling something haraam like drugs in this scenario or received wages for haraam work such as singing etc…. in this case, part of his repentance is to give in charity whatever he has in his hand of this wealth. If he used the money to do a business with which earned a lawful income, then he should give in charity the same amount as the haraam wealth. For example, if someone invested £30,000 of drugs money into the business then the £30,000 profits from the business should go to charity without the intention of reward. (Raddul Muhtar p.553 v.9)

Ibn Qayyim raḥimahullāh (may Allāh have mercy upon him) has written that “the way to get rid of this wealth and to make his repentance complete is only by giving it in charity…” (Zaadul Ma‘ad p.778 v.5)

The conclusion we can come to is that the aforementioned brothers should donate the unlawful money invested into the business only to the poor and destitute without the intention of reward. 

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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