I work for a division owned by a bank which only does accounting work for the bank. Is this allowed ?

BUSINESS MASAAIL%0D%0A%0D%0AThe Qur? and Hadith are explicit with regard to the prohibition of interest.%0D%0ARasulullah Sallallahu Alayhi Wasallam is reported to have said, 'May the%0D%0Acurse of Allah Ta?a be upon the one who consumes interest, the one who pays%0D%0Ainterest, those who witness the interest transactions and those who record%0D%0Ait.'(Mishk?) Thus the warning in this Hadith is severe.%0D%0A%0D%0AYet transactions in interest have become extremely widespread. However, it%0D%0Ais tremendously pleasing to note that many people are concerned about their%0D%0AImaan and wish to save themselves from any involvement in interest. Thus a%0D%0Agroup of accountants formulated some questions on interest related matters%0D%0Aand submitted them to Mufti Taqi Usmani Saheb of Pakistan in order to%0D%0Adetermine the definite Islamic position on these matters. Selected questions%0D%0Ahave been published for the benefit of other people involved in similar%0D%0Asituations.%0D%0A%0D%0AIn addition, we like to point out that the Jamiat consults Mufti Saheb on a%0D%0Anumber of Juristic matters.%0D%0A%0D%0A'Respected Mufti Saheb,%0D%0A%0D%0A?salaamu ?aykum Wa Rahmatullaahi Wa Barakaatuhu%0D%0A%0D%0AAs accountants we are faced with a moral dilemma with regard to certain%0D%0Aaspects of our work. Thus we write to you seeking guidance in this matter.%0D%0APlease advise us with regard to the following:%0D%0AAccording to the well known Hadith, Rasulullah (Sallallaahu ?ayhi Wasallam)%0D%0Ahas invoked the curse of Allah Ta?a upon four categories of people due to%0D%0Atheir association with interest. Among them is the one who has written the%0D%0Ainterest transaction.%0D%0A%0D%0AConcerning the above, what is the position of an accountant who prepares the%0D%0Afinancial statements of clients? In the course of this preparation, he has%0D%0Ato record amongst other transactions, the interest transactions of his%0D%0Aclients in their books. It should be noted that he is generally never%0D%0Apresent at the time of the transaction (except rarely which also can be%0D%0Aavoided). Does the accountant in the course of recording such interest in%0D%0Athe financial statements of clients also fall within the ambit of this%0D%0AHadith? The accountant in reality merely prepares an analysis of the year's%0D%0Atransactions and reports on the profit%2Floss and the assets and liabilities%0D%0Aof the business i.e. the financial position of the business for%2Fat a%0D%0Aparticular period.%0D%0A%0D%0AHereunder are some of the different types of transactions which accountants%0D%0Aroutinely record. Please advise us with regard to each one of them as to%0D%0Awhether they fall within the ambit of the said Hadith.%0D%0A%0D%0AQuestion 1%0D%0AAn accountant is working for a company. The company charges its debtors%0D%0Ainterest on their overdue accounts. The accountant is instructed by the%0D%0Adirectors, as part of his functions, to make appropriate entries in the%0D%0Arecords of the company in terms of which interest is charged on certain%0D%0Aoverdue accounts. The question arises whether it is permissible in Shari?%0D%0Afor such an accountant to:-%0D%0A%0D%0ABecome involved in this manner in the charging, recording and execution of%0D%0Ainterest on overdue accounts.%0D%0ARemain employed with such an employer who charges interest on overdue%0D%0Aaccounts.%0D%0AReceive a salary which is considered as Halaal in Shari? from such a%0D%0Acompany, a small portion of whose income is represented by interest%0D%0Acollected from debtors.%0D%0AQuestion 2%0D%0AThe accountant working for a company writes the cheques of the company. At%0D%0Atimes the amount recorded on the cheque includes an amount of interest.%0D%0A%0D%0AWhat is the position of the person who issues out such cheques?%0D%0AAlso what is the position of the signatories to such cheques?%0D%0A%0D%0AIt must be noted that the accountant himself was not an original party to%0D%0Athe transaction of loan which gave rise to the interest obligation.%0D%0AIn certain circumstances, even the signatory was not an original party to%0D%0Athe transaction.%0D%0A%0D%0AQuestion 3%0D%0AA motor vehicle salesman sells a vehicle to a customer. The customer%0D%0Afinances the vehicle through the bank upon which he pays interest. The%0D%0Asalesman in most instances has to assist the customer in completing the%0D%0Aapplication for finance to the bank by filling in the details on behalf of%0D%0Athe customer. Some application forms also have a place for the signature of%0D%0Athe person who assisted the customer in completing his application. Will%0D%0Athis assistance to the customer be prohibited? Does the salesman also become%0D%0Aa witness to this interest transaction merely by assisting to complete the%0D%0Aapplication? It should be noted that the financing transaction is distinct%0D%0Afrom the sale transaction and it is solely between the customer and the%0D%0Abank.%0D%0A%0D%0AQuestion 4%0D%0AA client comes to the accountant seeking advice of the best option with%0D%0Aregard to undertaking a certain business venture or the acquisition%2Fpurchase%0D%0Aof an asset. Among the various options which the accountant advises him on%0D%0Ais the position of financing via a bank whereupon he will be charged%0D%0Ainterest.%0D%0AWhat is the position of advising with regard to such an option?%0D%0AIf the client is a non-Muslim, will it make any difference?%0D%0A%0D%0AQuestion 5%0D%0AA person working for a non-Muslim company invests surplus funds, on%0D%0Ainstruction, in interest bearing securities. What is his position in%0D%0Arelation to the said Hadith?%0D%0A%0D%0AQuestion 6%0D%0AIf the client's business activities are mostly of a nature which the Shari?%0D%0Ahas declared forbidden, such as he sells liquor, or trades in meat not%0D%0Aslaughtered according to Islamic rites, can the Muslim accountant undertake%0D%0Ato do his books?%0D%0A%0D%0AQuestion 7%0D%0AA Muslim accountant works for a non-Muslim company which deals generally in%0D%0AHalaal merchandise, but also sells some Haraam items, such as liquor, etc.%0D%0AIs he committing any Shar? violation in recording the transactions%0D%0Apertaining to the Haraam items?%0D%0A%0D%0AQuestion 8%0D%0AWhat advice can you give to accountants in general pertaining to their%0D%0Aprofession?%0D%0A%0D%0ASubmitted by: A group of Sixteen Accountants%0D%0A%0D%0AReply%0D%0A'Respected Brothers%0D%0A%0D%0A?salaamu ?aykum Wa Rahmatullaahi Wa Barakaatuhu%0D%0A%0D%0AIt is true that according to a well known Hadith those who invoke the curse%0D%0Aof Allah with regard to a transaction of Riba (interest or usury) include a%0D%0Aperson 'who has written the interest'. However, this Hadith refers to the%0D%0Ascribe of the transaction i.e. a person who has written an agreement or%0D%0Aprepared the document to evidence the transaction. It does not include a%0D%0Aperson who was not involved in the transaction itself in any way, but while%0D%0Apreparing the accounts of a person, has come across reference to the Riba%0D%0Atransaction and has recorded it as an event that has already happened%0D%0Awithout his involvement. This is how the scholars have interpreted the%0D%0AHadith:.%0D%0A%0D%0AAl-Ubbi, the famous commentator of Sahih Muslim has explained the Hadith in%0D%0Athe following manner:%0D%0A%0D%0A'By the word 'writer of Riba' the Hadith intends the scribe of the document%0D%0Aevidencing the transaction of Riba, and by the word 'witness' it means a%0D%0Aperson who attended the occasion to become a formal witness in support of%0D%0Athe transation . the Holy Prophet (Sallallaahu ?ayhi Wasallam) has held them%0D%0Aall as equal in sin because the transaction took place only with their joint%0D%0Aefforts.'%0D%0A%0D%0AIt is evident from these references that it is the writing of the document%0D%0Aof Riba which invokes the curse of Allah and not its subsequent recording in%0D%0Aa statement of the facts that already happened. Therefore, the case of an%0D%0AAccountant of a firm or a company is different from the person who is%0D%0Adirectly responsible for the operation of interests.%0D%0A%0D%0AAnswer 1%0D%0ASo far as the Accountant is not involved in charging interest, claiming it%0D%0Afrom the debtor or pursuing him for that matter, merely making entries in%0D%0Athe books of account will not make him liable to fall within the ambit of%0D%0Aprohibition stipulated in the Hadith. Unless the major part (at least 51%)%0D%0Aof the company is Haraam it is not prohibited to draw salary for permissible%0D%0Aservices rendered to that company.%0D%0A%0D%0AAnswer 2%0D%0AIf the cheque is intended to be written or issued exclusively for the%0D%0Apayment of interest with a clear statement that this should settle the%0D%0Aamount of interest due on the issuer of the cheque, it is not permissible%0D%0Afor any person to write or issue such a cheque. However, if the cheque is%0D%0Aissued for the settlement of different liabilities of which interest is also%0D%0Aa part then the issuance or writing of such a cheque cannot be termed as%0D%0Aabsolutely prohibited. This applies to both issuer and the signatories of%0D%0Athe cheque.%0D%0A%0D%0AAnswer 3%0D%0AOf course, any assistance provided to the customer for obtaining an interest%0D%0Abearing loan, including the filling of the application form for the loan, is%0D%0Anot permissible according to Shari? and it does fall within the scope of the%0D%0Awarning of the Hadith.%0D%0A%0D%0AAnswer 4%0D%0AA Muslim cannot advise any one to opt for a financing option based on%0D%0Ainterest. The mere fact that the rental in a lease contract has been based%0D%0Aon the market rate of interest does not render the transaction unlawful.%0D%0AHowever, there are certain other conditions which must be fulfilled for a%0D%0Avalid lease transaction that cannot be summarised in this letter.%0D%0A%0D%0AAnswer 5%0D%0AAs mentioned earlier, direct involvement of a Muslim in a transaction of%0D%0Ainterest is prohibited and comes under the purview of the above Hadith.%0D%0ATherefore, it is not permissible for an employee of a non-Muslim to invest%0D%0Ahis surplus funds, on his instruction, in interest-bearing securities,%0D%0Abecause in this case the employee works as an agent for the employer which%0D%0Ais a direct involvement in the transaction of Riba.%0D%0A%0D%0AAnswer 6%0D%0AIf most of the activities of a business are Haraam, a Muslim should not take%0D%0Aup the work for that business.%0D%0A%0D%0AAnswer 7%0D%0AThe answer to this question is analogous to question 1 i.e. so far as a%0D%0AMuslim is not involved in a prohibited transaction directly, merely%0D%0Arecording that transaction in the books of account is not Haraam. However, a%0D%0AMuslim should avoid this also as far as possible.%0D%0A%0D%0AAnswer 8%0D%0AMy advice is to abide by Shari? in every walk of life.%0D%0A%0D%0AMufti Taqi Usmani Saheb%0D%0A