Working For A Financial Institution
Question
I work in a claims and disability assessment position, where I assess severe illness and disability, for Old Mutual. Someone brought it to my attention that Old Mutual works with interest. Is it permissible to work for this type of institution?
Answer
Based on our research, Old Mutual is a financial institution that deals in Riba (interest). Just as most banks around the world, they deal in interest and their incomes are based on interest. It is important to note that interest is Haram. There are many evidences for this, some of which are as follows:
“And Allah has made trade Halagal and made interest Haraam.”
Surah al-Baqarah 275
“Allah destroys interest and gives increase for charities. And Allah does not like every sinning believer.”
Surah al-Baqarah 276
“O you who believe, fear Allah, and give up what remains of interest, if you are true believers. And if you do not, then beware of a war with Allah and His Messenger. But, if you repent, you may retain your principal (amount of wealth), you do no wrong, nor are you wronged.”
Surah al-Baqarah 278 – 279
In this verse, Allah Ta’ala wages war against those Muslims who involved themselves in Riba (interest).
“O you who believe, do not consume interest, doubled and multiplied, but fear Allah that you may be successful.”
Surah Al-Imran 130
”The Messenger of Allah Sallallahu Alaihi Wasallam cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it.”
Tirmidhi 1206
From this Hadith, the Messenger of Allah Sallallahu Alaihi Wasallam curses all of those who are involved in Riba, whether it be the one who is paying interest, the one who is charging interest, the one who witnesses an interest transaction, or the one who writes/records an interest transaction.
Therefore, from the above-mentioned evidences, Muslims must abstain from all aspects of interest. As such, it will not be allowed for a Muslim to work at Old Mutual or any similar financial institutions.
References (Arabic / Urdu sources)
وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا
يَمْحَقُ ٱللَّهُ ٱلرِّبَوٰا وَيُرْبِى ٱلصَّدَقَـٰتِ وَٱللَّهُ لَا يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ
يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا ٱتَّقُوا ٱللَّهَ وَذَرُوا مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا إِن كُنتُم مُّؤْمِنِينَ
فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا لَا تَأْكُلُوا ٱلرِّبَوٰٓا أَضْعَـٰفًا مُّضَـٰعَفَةً ۖ وَٱتَّقُوا ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ
حَدَّثَنَا قُتَيْبَةُ، حَدَّثَنَا أَبُو عَوَانَةَ، عَنْ سِمَاكِ بْنِ حَرْبٍ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنِ ابْنِ مَسْعُودٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ.
- Answered by
- Mufti Muhammad Isa Ali
- Checked & approved by
- Mufti Yacoob Vally Saheb
Fatawa SA is an independent, read-only index of fatawa already published by Darul Ifta Ibn Masood. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.