Q. Can accountants apply for bank loans (interest chargeable) on behalf of clients? Can Accountants record bank loans and interest transactions in financial statements?
A. In principle, active and direct participation in any unlawful venture is impermissible. Allah Ta’ala says,
و لا تعاونوا على الإثم و العدوان(النساء:٢)
Do not assist one another in sin and transgression (Nisa: 2)
In the case of an accountant applying for bank loans (interest chargeable) on behalf of clients, it will be impermissible for an accountant to do so as he will be actively and directly participating in an unlawful venture.
However, it will be permissible for an accountant to record bank loans or financial statements of interest transactions as there is no direct participation in interest.
Allah Ta’ala Knows Best
Mufti Ismaeel Bassa