Recording Riba-Based Transaction
Fatwa No: 376105

Question

salam. i read a fatwa by a famous Hanafi Scholar that subsequent recording of riba-based transaction is not prohibited though disliked. he means that it is haram to be record a riba based transaction at the time of its occurence but not afterwards. is this view of weight?

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

First of all, our site is not concerned to collect all the Fataawa of the scholars and discuss them.

As for your question, the view that we adopt is that writing Riba-based debt (interest and/or usury) is forbidden as Jaabir  may  Allaah  be  pleased  with  him narrated that the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said: “Allah has cursed the one who consumes Riba, the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) added: “All of them are equal in sin.” [Muslim]

With regard to the recording of transactions that have already been completed and finished, then it appears that it is not considered as recording Riba, but it includes cooperating with the sinner in his sin which necessitates endorsing his falsehood, and it is therefore not permissible, as Allah Says (what means): {…but do not cooperate in sin and aggression.} [Quran 5:2]

An-Nawawi  may  Allaah  have  mercy  upon  him said when explaining the above Hadeeth: “This is an explicit statement on the prohibition of recording sale transactions between two parties in a Riba-based contract or being a witness on them. It also proves the prohibition of helping in falsehood.” [End of quote]

It should also be noted here that a Muslim who does not have knowledge of Sharee'ah should ask a scholar whose knowledge and piety he trusts regarding the matters of religion that he does not know, as ordained by Allah: {So ask the people of the message if you do not know.} [Quran 16:43]

If a scholar whose knowledge and piety he trusts issues a Fatwa to him, then there is no harm on him to act according to this Fatwa, and he is acquitted from sin by that.

In case he asks more than one Mufti and gets different answers from them, then in our view he should act according to the Fatwa of the scholar whom he believes to be more knowledgeable and more pious, and he should not follow the easiest view just because it is the easiest.

Allah knows best.

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