Working in an Islamic bank

Fatwa ID: 02271

Answered by Maulana Mujahid Hussain

Question:

Assalamu Alaikum.

I have been working in the very reputed and the largest Islamic Bank in
Bangladesh which is trying to establish interest free economy (and its
effort is much bigger than the so-called other islamic banks in the
country). But as an employee I know that in spite of all efforts made by
the governing authority, shariah council and shariah audit, there are
many violations of shariah principles happening in the investment deals,
transactions etc.

There are some reasons behind it. Such as- Sometimes investment client violates shariah, sometime concerned officer is forced to do so by branch manager or higher authority.

Some of the violations of shariah are as follow :
1/ New investment created for adjusting the previous investments.
2/ Cash facilities provided to the client directly or indirectly.
3/ Bank officer sign in the cash memo as seller.
4/ New investment created for adjusting the previous investments.
5/ The customers take the goods directly from the seller instead of the Bank.
6/ Goods are purchased from the sister organizations of the clients.
7/ Investment client is engaged as buying agent in every case.
8/ Bank doesn't care whether investment client buys good or not. In fact 
some time they already knew that client will not buy the same as he is saying.
9/ Bearer receives payment instead of investment client and it is advised to record the transaction as if the client himself received the payment. etc

In the above circumstances where i know that some shariah violations are
occurring every day (and it is notable that there are also some investments that are compliant with shariah. I mean neither it is 100% shariah compliant nor 100% incompliant with shariah) can I work in such an islamic bank?
Some opine that since there is an effort to establish interest free
economy, one can work in such Islamic Bank and its income is halal. Is it
so?  I am in dilemma. Please give thoughtful answer regarding this
matter with references.

Answer:

Bismillah

Indeed your situation is a complicated one. Having consulted my teacher, I recommend that you look at your situation from  a more personal point of view.

What I mean is, as long as your personal job does not involve you doing haram, then whatever else takes place should not have impact on your earnings being Halal. As you have indicate there is no better bank for you to apply your skills at then this bank you currently work at.

Allah Knows best.

Written Maulana Mujahid Hussain

Checked and approved by Mufti Tosir Miah 

Darul Ifta Birmingham

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