An Accountant Negotiating Interest Transactions
Question
I’m an accountant in a Transport & Freight company. My job is to do all accounting and financing works. Sometimes I have to deal with the interest. The company purchases vehicles on bank finance, so I have to negotiate interest rate, calculate it and account it on behalf of company.
Purchasing of vehicle not always, once a year but accounting I do every month. Is it permissible to deal with interest in this situation on behalf of the company?
Answer
We as Muslims are required to abstain from all interest bearing transactions as well as being associated with such transactions, to such an extent that one should not draw up documents that calculate and finalize interest bearing transactions or even negotiate with the banking institute on
behalf of the employer.
We therefore suggest that this task of negotiating with the bank etc. be passed over to another non-Muslim accountant that may be employed by the company. You should explain to your employer that as a Muslim, your religion does not allow you to negotiate these types of interest-bearing
transactions and hence you will have to excuse yourself from carrying out such transactions.
References (Arabic / Urdu sources)
اهدى الى رجل شيئا او اضافه ان كان غالب ماله من الحلال فلا باس الا ان يعلم بانه حرام فان كان الغالب هو الحرام ينبغى ان لا يقبل الهدية ولا يأكل الطعام الا ان يخبره بانه حلال ورثه او استقرضه من رجل كذا فى الينابيع
(الفتاوى الهندية ص ٣٤٢ ج ٥ )
(الاشباه والنظائر ص ٣٠٩ ج ١ )
- Approved by
- Mufti Muhammed Saeed Motara Saheb D.B.
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta, Darul Uloom Azaadville — https://www.iftadua.co.za/an-accountant-negotiating-interest-transactions/17772/
Fatawa SA: https://fatawa.co.za/fatwa/azaadville-17772
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