Managing our wealth is an amanah (trust) that is truly significant in our lives. Failure in properly managing our wealth according to the guidance of the Shari’ah will incur severe consequences, whether in this world or the Hereafter.
Wealth management according to Shari’ah guidelines is by ensuring that all transactions pertaining to the wealth are done through lawful means. It is wajib (obligatory) upon us to ensure that all of our wealth is obtained through lawful sources and that they are utilized for halal (permissible) matters only.
In the hadith of Mu‘adh, the Prophet said (which mean):
“The feet of a slave will not move on the Day of Judgment until he has been questioned about four things: his body – how he used it, his life – how he spent it, his wealth – where he earned it and how he spent it, and his knowledge – how he acted upon it.”
Unfortunately, there are still Muslims that do not care much with regard to how their wealth is earned, such as transactions that are based on riba (usury or interest). There are many within our society that are still confused with the return earned from savings or transactions, whether it is deemed as riba or not, due to the lack of knowledge on whether such savings or loan was obtained through the Islamic banking system or riba-based system.
Verily the Islamic banking system is a system that is riba-free, void of elements of gharaar (uncertainty), and without oppression. It is truly different from the conventional banking system that is based on riba. Allah mentions in verse 275 of surah al-Baqarah (which mean):
“Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.” [Al-Quran, surah al-Baqarah, vese 275]
In a hadeeth narrated by Abdullah bin ‘Abbas, Rasulullah said (which mean):
“When adultery and interest will become rife in a community then they have drawn the wrath of Allah.” [Narrated by al-Hakim]
These two proofs have indicated that riba is prohibited by Allah so whoever is involved with riba in any form of transaction will incur the wrath of Allah.
It is wajib for all Muslims to opt and utilize the Islamic banking system for it has conditions that are to be fulfilled, namely:
1. The Islamic banking system was created based on a mu’ammalah (social dealings and relations) system that is built upon iman (belief) and taqwa of Allah as opposed to other banking systems that are based on profits alone, without adhering to the Shari’ah.
2. The Islamic banking system greatly emphasizes the very concept of rewards and sins in all of its transactions, which differs from the conventional banking system.
3. The Islamic banking institution utilizes the principle of aqad (contract) that is clear such as sale-purchase and investment to earn a profit, while other banking institutions solely use the loan concept that imposes riba to its customers purely to earn revenue.
Narrated ‘Abdullah bin Mas‘ood (which mean):
“The Messenger of Allah cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.” [Narrated by Abu Dawud].
4. The profits earned by Islamic banking institutions are zakatable and it becomes wajib to have zakat collected from them, and benefited by qualified recipients (asnaf). On the contrary, profits from conventional banking institutions are not zakatable for it does not comply with the Shari’ah.
To ensure that Islamic banking system will always comply with the Shari’ah requirements in its transactions, the Central Bank of Malaysia has stipulated that every bank must have a scope of work that includes four main functions, namely Shari’ah Research, Shari’ah Review, Shari’ah Risk Management, and Shari’ah Audit.
Islamic banking institutions also must have a minimum of five (5) Shari’ah Committee Members who are independent and possess the necessary qualifications and expertise in the field of Shari’ah and Islamic Finance, in advising and ensuring that the system implemented complies with Shari’ah principles.
Therefore, let us fully support the Islamic banking system and ensure that our selves, our families, wealth, and finances are safe and attain the blessings from Allah.