Wealth Purification

1. Introduction
Read This part presents a cogent Shariah argument for purification of the wealth from the
perspective of an individual, a firm or a government in the management of funds/wealth. Financial
planners are usually familiar with terms like wealth creation, wealth accumulation, wealth
protection and wealth distribution. But the term wealth purification is something unique arising
from ethical considerations embedded in Islamic wealth management. It may look strange to those
unfamiliar with this concept. According to received knowledge and as interpreted by scholars of
Islam, everything that is owned is bestowed as a gift from God. So, the source of wealth is
Providence as bestowed to owners.
Focus of the Passage:

• This section presents a strong Islamic legal argument (Shariah argument) for why wealth
purification is important.

Unfamiliarity for Some:

• The concept might seem strange to those unfamiliar with Islamic financial principles.

Source of Wealth:

• Islamic teachings emphasize that all possessions are ultimately gifts from God
(Providence). This perspective shapes how Muslims manage their wealth

Read Wealth is one such precious gift that can be used for material success in this world and could
be used importantly for eternal salvation in the life after death by the judicious care in earning
wealth and spending it.

▪ Precious Gift: Wealth is viewed as a blessing or gift, not simply something earned. This
emphasizes the responsibility associated with managing it wisely.
▪ Material Success: Wealth can be used to achieve a good standard of living, security, and
opportunities in this life.
▪ Eternal Salvation: More importantly, the quote suggests that wealth can be used in ways
that contribute to one's spiritual well-being and potentially lead to a better afterlife.

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The key to achieving both material and spiritual goals lies in "judicious care":

• Earning Wealth Ethically: The source of wealth is important. It should be acquired

through honest means that align with religious or moral principles.
• Spending Wisely: Avoiding extravagance and wastefulness is crucial. Wealth should be
used for the benefit of oneself, family, and society

Read The faith promises a life after death, so wealth is to be spent for promoting the life. For this
purpose, certain obligations are imposed upon the wealth that is accumulated in legal ways by
individuals, organizations (mostly firms) and governments. The purpose of such a need to purify
wealth is an obligation for the benefit of wealth owners. By performing these obligations, one
purifies the wealth which may otherwise be contaminated to being impure due to the infringing on
other people’s rights in the process of acquiring the wealth.

Life After Death and Wealth Management:

• The faith promises an afterlife, which shapes how wealth is viewed.

• Wealth is seen as a resource to be used not just for this life but also for the next.

2. Obligations on Wealth:

• The passage emphasizes that wealth accumulation comes with responsibilities

(obligations).
• These obligations apply to individuals, organizations (like businesses), and even
governments.

3. Purpose of Wealth Purification:

• The term "purification" suggests that wealth might be considered "impure" if not managed
ethically.
• Performing these obligations is presented as a benefit for the wealth owner, not a burden.

4. Ethical Acquisition of Wealth:

• The passage implies that wealth can be "contaminated" if acquired through unethical
means, like infringing on others' rights.
• Purification through obligations helps ensure the wealth is "clean" and ethically sourced.

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Read Purification of wealth, however, can mean two things. First, it means the purification of
wealth itself through different commands prescribed by Shariah, through offering of wealth as
zakat (annual payment due to the poor based on a portion of the value of net worth) sadaqat (alms),
etc. Second, it may also be used in the sense of purifying something by means of using wealth.
That is, purifying a human being from his sins with the use of wealth given by God. These two
meanings are primarily derived from different injunctions in both Quran and Sunnah (authentic
sayings of the Prophet) as shall be elaborated in this section.

1. Purification of Wealth Itself:

This refers to ensuring wealth is acquired and managed according to Islamic principles (Shariah).
Here's how it works:

• Shariah Commands: Following Islamic guidelines guarantees the wealth is obtained

through ethical means, avoiding practices like usury (interest-based transactions) or
gambling.
• Zakat & Sadaqah: These charitable obligations contribute to purifying wealth by sharing
it with those in need. Zakat is a mandatory annual donation based on a portion of one's
wealth, while Sadaqah is voluntary charity.
• Purification Process: By fulfilling these obligations, Muslims ensure their wealth is free
from any potential violations of Shariah principles.

2. Purification of the Human Being Through Wealth:

This meaning focuses on using wealth for positive actions that benefit both oneself and society,
ultimately leading to spiritual purification. Here's how this happens:

• Gift from God: The passage reminds us that wealth is a blessing entrusted by God. Using
it for good deeds shows gratitude and aligns with God's will.
• Seeking Forgiveness: Performing good deeds with wealth can be a way to seek
forgiveness for past transgressions. This might involve supporting religious institutions or
helping others in need.
• Ethical Use: Avoiding extravagance and wastefulness promotes responsible stewardship.
Using wealth for self-improvement, helping others, and contributing to society purifies the
individual's character.

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2. Meanings of Wealth Purification

Read It is important to understand the two different meanings of purification of wealth. Wealth
can be a tool for purification for other things, especially purification of human hearts from the sins
committed. This is obtained through spending wealth, as in the case of supporting orphans, or to
build homes for homeless people. This can only be done when the wealth itself is obtained from
permissible means because Muslim scholars have agreed that non-permissible wealth cannot be a
tool to for cleansing (kaffarat). Alternatively, wealth purification can have its literal meaning.

1. Purification Through Spending:

• Tool for Purification: Wealth can be used as a tool to purify something else, particularly
the human heart from past sins.
• Spending for Good: This purification is achieved through acts of charity and kindness,
like supporting orphans or building homes for the homeless.
• Permissible Wealth: However, for wealth to be a genuine tool for purification, it must be
obtained through ethical means according to Islamic law (Shariah).
• Non-Permissible Wealth: Muslim scholars agree that wealth acquired through non-
permissible means (e.g., usury, gambling) cannot be used for cleansing (kaffarat) purposes.
This is because such wealth itself is considered impure.

2. Literal Purification:

The passage mentions "literal purification" as a second meaning, but doesn't elaborate on it here.
This likely refers to ensuring the wealth itself is free from any taint or association with forbidden
activities. This can involve:

• Avoiding Riba: Excluding interest-based transactions from one's financial activities.

• Zakat and Sadaqah: Fulfilling obligations to charity (Zakat) and voluntary giving
(Sadaqah) can help purify wealth by removing any potential impurity associated with its
acquisition.

Essentially, wealth purification has two dimensions:

• The source: Ensuring the wealth itself is obtained ethically and doesn't carry the burden
of wrongdoing.
• The use: Utilizing wealth for good deeds like charity, which can spiritually benefit both
the giver and the recipient.

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The second meaning of wealth purification is to purify the wealth itself, as mentioned above, which
involves the process of purifying wealth if it has been acquired inadvertently as impure. Cleansing
of wealth is implied by this second meaning. Although it is this second meaning that is of main
concern for an Islamic financial planner, the first meaning should be given important consideration.
The discussion in the ensuing sections will elaborate on both these meanings as well as other
relevant details pertaining to wealth purification. The classical sources of Islamic literature are
consulted for this purpose to make the argument simultaneously more authentic and appealing.

2.1.First Meaning: Purification for Human Heart and Soul

Wealth can be a means of purification for the human heart and soul: this is also observed in other
faiths. Purification of heart and soul after the commitment of sins can be realized by spending
wealth willingly for the sake of saving oneself from the wrath of God. This spending can either be
obligatory as a duty which binds one to offer part of wealth as zakat from the wealth in place at
the end of each year, or as kaffarat (an act of prescribed atonement or penitence one has to do for
making an error or mistake one has made, in order to wipe out or blot out that demerit). In those
cases, the use of wealth is mandatory as an action to be performed (after certain conditions are
met) and there is no option of not doing it since this is compulsory. The most important meaning
of purification through obligatory means is zakat and, literally, zakat has two meanings: growth
and purification that is consistent with the objective of the lawgiver as a purification of wealth.

1. Wealth as a Means of Purification:

• The passage argues that wealth, when used correctly, can be a way to cleanse the human
heart and soul. This concept aligns with some other religions as well.

2. Purification Through Spending:

• The act of purification happens through willingly spending wealth to avoid divine
punishment for past sins.
• This spending can be obligatory (mandatory) or voluntary:
o Obligatory Spending: This refers to fulfilling religious duties like:
▪ Zakat: An annual obligatory charity based on a specific portion of one's
wealth.

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 ▪ Kaffarat: A specific act of atonement or compensation prescribed for
certain transgressions to erase those sins.
• In both cases, using wealth for these purposes is compulsory. There's no option to avoid
them once the conditions for obligation are met.

3. Importance of Zakat:

• The passage emphasizes the significance of Zakat as the primary means of purification
through obligatory spending.
• Literally, Zakat has two meanings:
o Growth: This signifies how giving Zakat can bring blessings and prosperity.
o Purification: This highlights how Zakat cleanses wealth from any potential taint
and purifies the giver spiritually.

Read However, purification by way of using wealth may be through optional means of spending
in which case the performer will be rewarded manifold by God. But if no wealth is used in this
way, there is no demerit for not doing so because no one is held answerable if he refrains from
doing so.

• Optional means of spending: This indicates that these are voluntary acts of charity or good
deeds that are not obligatory under Shariah law. Examples could include donating to worthy
causes, supporting family members beyond basic needs, or helping those in need.

Rewarded manifold by God: The passage emphasizes that performing these voluntary good
deeds with wealth will bring significant blessings and rewards from God. This motivation
encourages Muslims to engage in charitable acts beyond mandatory obligations.

No demerit for not doing so: This clarifies that not engaging in these optional forms of wealth
purification is not considered a sin or punishable offense.

No one is held answerable: This reinforces that these are voluntary acts, and Muslims are not
held accountable by Shariah law if they choose not to participate.

The Quran has explicitly used it in the meaning of purification in the following verse:

Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it
(Quran 9: 103) ሶደቃን (ምጽዋት) ከገንዘቦቻቸው ውሰዱ እና እነርሱን ልታጠራቸውና ልትቀድሳቸው

Read It should be noted that the majority of the commentators on Islam’s Scripture take the word
sadaqah in this verse to mean the same as zakat. But the question here is what is it that they are

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purified from by means of sadaqah? How does sadaqah purify and from what? Some commentators
have interpreted it as purification of sins. For instance, according to some scholars, purification
here means purification from the grime of human sins, which indicates the purifying impact of
sadaqah/zakat. Similar interpretation is provided by another scholar who has explained the
meaning of purification in this verse by stating that: ‘Sadaqah is made as a purifying tool here
because it is said (in a hadith) that sadaqah is the grime of people (their wealth). So, when sadaqah
is taken, those grimes are removed. Therefore, taking sadaqah is equivalent to purification (from
the grime of sins).

1. Interpretation of Sadaqah:

• The majority of Islamic scholars interpret "sadaqah" in this verse to be synonymous with
"zakat."
• Zakat is a mandatory annual charitable obligation based on a portion of one's wealth.

2. Purification Through Sadaqah:

• The passage raises a question: What exactly does sadaqah (or zakat) purify one from?
How does it achieve this purification?

3. Purification from Sins:

• Some scholars interpret purification as cleansing oneself from sins.

4. Grime Analogy:

• This interpretation uses a metaphor. Sadaqah/zakat is seen as removing the "grime of

human sins" from the individual.
• Grime represents the negative impact of sin, like a stain on one's character.

5. Supporting Hadith:

• The passage references a hadith (saying of Prophet Muhammad) that describes sadaqah
as "the grime of people (their wealth)."
• This further reinforces the idea that giving sadaqah removes negative aspects associated
with wealth.

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6. Purification Process:

• The scholar implies that giving sadaqah acts like a purification ritual, removing the
"grime" of sin associated with wealth.

Read Another explicit text found in hadith literature also shows the purifying effect of zakat. A
hadith narrated by Imam Muslim reports the Prophet to have said that sadaqah (meaning alms) is
not permissible for the family of Muhammad and it is the grime of people. According to Imam al-
Nawawee, the underlying cause for the prohibition of sadaqah and zakat for the family of the
Prophet mentioned in this hadith is

‘‘Their dignity and their transcendence from the grime of people’. The meaning of people’s
grime [in this hadith] is that zakat is purification for the wealth of people and their souls,
as stated in the Scripture: ‘Take Sadaqah (alms) from their wealth in order to purify them
and sanctify them with it.’ Thus, zakat is for the purpose of washing of grimes (impurity)
in earning the wealth’’

Apart from the meaning of purification as explained thus far, zakat is also literally used in the
meaning of increase and growth. The economic benefit of the wealth purification in the form of
wealth increase through paying of obligatory and optional means is also obvious. When the poor
are helped by the rich, the former are not going to use the money for hoarding or other purposes.
Since they are already poor, they need to spend this amount to fulfill their basic needs of life. This
leads to higher consumption, which automatically pushes the wheel of production due to an
increase in demand observed in the market as a result of an increase in the purchasing power of
the poor. The poor always constitute a greater portion of society. Indeed, one cannot ignore the
invisible Divine hand that accelerates this whole process as evidenced from this commandment:

Allah will destroy Riba (usury) and will give increase for Sadaqat (deeds of charity, alms,
etc.). (Quran 2: 276). አላህ ሪባን (አራጣን) ያጠፋል ለሰደቃም (የበጎ አድራጎት ስራዎችን እና

ምጽዋቶችን) ያበዛል

Economic Benefits of Zakat:

• Wealth Redistribution: Zakat transfers wealth from the rich to the poor, promoting
economic equality.

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 • Increased Consumption: The poor are more likely to spend Zakat they receive on basic
needs, boosting demand in the market.
• Stimulating Production: Higher demand encourages businesses to produce more goods
and services, leading to economic growth.
• Larger Pool of Consumers: The passage highlights the significance of the poor as a
significant portion of society with increased purchasing power due to Zakat.

Divine Intervention:

• The passage subtly mentions a belief in a "divine hand" influencing the positive
outcomes of Zakat. This suggests that fulfilling this religious obligation brings blessings
beyond just the economic benefits.

Overall, the passage presents Zakat not just as a spiritual act of purification but also as an
economic tool that can stimulate growth and reduce inequality.

Read Thus, zakat is a source of increase for the growth of societal welfare apart from it intrinsically
being a means of purification. Increase in wealth is in the form of both actual material increase, as
explained, or divine increase by way of barakah and blessings from God.

1. Societal Welfare:

• Source of Increase: Zakat is a mechanism for wealth redistribution. By giving to the

poor and needy, it injects money back into circulation, stimulating the economy and
improving overall societal well-being.
• Material Increase: The passage emphasizes the tangible positive impact of Zakat. It
increases the material resources available to those in need, leading to a more prosperous
and equitable society.

2. Spiritual Blessings:

• Divine Increase: Beyond the material benefits, Zakat is also believed to bring blessings
and spiritual rewards from God (barakah).
• Purification: As discussed earlier, Zakat purifies wealth by fulfilling a religious
obligation and promoting generosity. This act of charity itself can be seen as a source of
spiritual growth and divine favor.

2.2.Second Meaning: Purification of wealth itself.

Wealth purification may also refer to the process by which impure wealth is made clean. In
practical life, wealth is usually mixed up of both permissible and impermissible activities, so it is
dubious (Mushtabih). The non-permissible and dubious portion is not necessarily made a part of
the permissible portion willingly. Rather the two may be mixed due to circumstances outside one’s

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control. In such cases, the non-permissible/ dubious portion has to be distinguished from the
permissible portion and then treated accordingly. It is noteworthy that wealth which is non-
permissible wealth can be in two forms. Either the entire amount of wealth is, or only part of it is
impermissible wealth while part of it is permissible wealth. The Muslim jurists have treated both
these differently as elaborated below.

Impure Wealth and Purification Process:

• Impure Wealth: This refers to wealth acquired through means that violate Islamic
principles (Shariah), such as usury or gambling.
• Purification Process: Wealth purification in this context involves identifying and
separating the impure portion of wealth from the permissible portion.

Challenges in Real-World Scenarios:

• Mixed Earnings: The passage acknowledges that, in reality, wealth often comes from a
mix of permissible and impermissible activities. This creates a gray area (Mushtabih).
• Unintentional Mixing: It emphasizes that the mixing might not always be deliberate.
Circumstances beyond one's control can lead to this situation.

Distinguishing and Treating Different Portions:

• Separation: The key aspect of purification involves distinguishing the impure/dubious

portion from the permissible one. This might involve calculations or estimates.
• Treatment: Once separated, the non-permissible/dubious portion needs to be dealt with
appropriately. This could involve discarding it, donating it to charity, or using it for a
permissible purpose with the intention of seeking forgiveness.

Types of Non-Permissible Wealth:

• Entire Wealth: In some cases, the entire wealth might be considered impure due to its
source.
• Partial Impurity: More commonly, only a portion of the wealth might be impure, while
the rest is permissible.

Importance of Scholarly Guidance:

The passage mentions that Muslim jurists (scholars) have established different approaches for
handling these two scenarios. Consulting a qualified scholar is crucial for navigating these
complexities and ensuring proper wealth purification.

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2.2.1. Purification of Wealth that is Entirely Haram

Wealth that is solely impermissible can never be a source of salvation and it is not acceptable to
God in any form of Sadaqa, as reported in a hadith by Imam Muslim:

‘’Allah the Almighty is Good and accepts only that which is good/pure [halal]’’ "ሁሉን ቻይ

የሆነው አላህ ቸር ነው እና የሚቀበለው መልካሙን/ንፁህ የሆነውን ብቻ ነው" (ሀላል)

• Wealth that is solely impermissible: This refers to wealth acquired through means that are
strictly forbidden according to Islamic law (Sharia). Examples include money earned through
usury (interest), gambling, theft, or fraud.

• Source of salvation: In Islam, salvation refers to achieving God's mercy and avoiding
punishment in the afterlife. This sentence emphasizes that wealth obtained through unlawful
means cannot contribute to one's salvation

Read Commenting on the importance of spending from halal wealth in the light of the above,
Imam al-Nawawee asserts that this hadith is like a pillar of one of the most important principles in
Islam. Anything that is spent by a believer in the way of God must be from permissible wealth and
must be purified from that part of the impermissible mixture:

The literal meaning of the word tayyib is purification, cleanliness and freedom from
malignancy. This hadith is among those authentic (ahadith) that are the pillars of Islam and
the foundation of (its) injunctions. This hadith stresses on spending (in the way Allah) from
halal earnings and it also prohibits spending from other (non halal) sources . . .

In the light of such texts, the scholars argue that if the entire wealth is earned from non-
permissible sources and no portion of it is halal, zakat should not be paid from it. This is because
the purpose of zakat is the purification of oneself as well as purification of the remaining wealth.
But if the wealth itself is not clean, how can it be a source of cleanliness and purification for the
payer and others? In addition, wealth that is earned from non-halal sources does not enter into
the ownership of someone who has earned it by such illegal means. Hence, the owner cannot
make others the owners of such wealth by giving it to them in zakat.

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Core Argument: Scholars argue that Zakat should not be paid from wealth entirely earned
through non-permissible (haram) means.

Reasoning:

• Zakat's Purpose: Zakat serves two purposes:

o Purification of oneself: Paying Zakat is considered an act of good deed that
purifies the giver spiritually.
o Purification of remaining wealth: Zakat helps cleanse the remaining wealth by
removing a portion that rightfully belongs to the poor.
• Unclean Source: If the wealth itself is not acquired ethically (haram), it's considered
"unclean."
• Source of Purification: Unclean wealth cannot be a source of purification for the giver,
recipients, or the remaining wealth. It's like trying to clean something dirty with dirty
water.

Ownership and Distribution:

• Incomplete Ownership: The argument suggests that wealth earned through haram
means might not be fully owned by the person who acquired it. They might have a claim
to it, but there's a moral and religious obligation attached.
• Ineffective Distribution: Giving Zakat from haram wealth wouldn't fulfill the true
purpose of Zakat, as the giver isn't transferring rightful ownership to the recipient. It's
like giving away something you don't truly own.

Overall, the passage emphasizes the importance of the source of wealth for Zakat. It argues
that Zakat can only be a tool for purification if the wealth itself is obtained ethically.

It is stated in al-Mawsooa’ al-Fiqhiyyah that:

Haram wealth, like earned through usurpation or theft or bribery or riba etc., is not in the
ownership of the person who possesses it. Therefore, it is not subject to zakat because zakat
entails making another person the owner and a person who is not owner himself cannot
make others owner. In addition, zakat purifies the person who pays it and also purifies the
wealth from which zakat is paid, as in the statement of Allah Almighty: (Take Sadaqah
(alms) from their wealth in order to purify them and sanctify them with it.). The Prophet
has said: ‘Allah does not accept charity (from goods acquired by) embezzlement.’ But
(compliance with such texts) the whole of haram wealth is malignant (so how can it be a
source of purification?)

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Haram Wealth and Zakat:

• The passage states that wealth acquired through unlawful means like theft, bribery, or
usury (riba) is not considered truly owned by the possessor. It's seen as ill-gotten gain.
• Since Zakat involves transferring ownership of a portion of one's wealth to charity,
someone who doesn't truly own the wealth cannot fulfill this obligation.

Purification Through Zakat:

• Zakat serves a dual purpose. It purifies the giver by demonstrating their commitment to
Islamic principles and sharing their wealth.
• It also purifies the wealth itself because it is used for charitable purposes, benefiting those
in need and aligning with God's will.

The Challenge of Haram Wealth:

• The passage quotes a verse from the Quran and a Hadith (saying of the Prophet) that
emphasize Allah does not accept charity from stolen or embezzled wealth.
• This creates a dilemma: how can wealth obtained through sin be a source of purification?

The Underlying Issue:

• The passage doesn't explicitly state the solution, but it implies that Haram wealth needs to
be rectified before it can be used for Zakat. This might involve returning stolen goods or
seeking forgiveness for wrongful actions.

In essence, the passage highlights that Zakat is a form of purification for both the giver and the
wealth itself. However, wealth obtained through unlawful means doesn't qualify for Zakat until
it's somehow "purified" by rectifying the wrongdoing associated with it.

Read Instead, it is the responsibility of the person possessing such wealth to return it to their real
owners. This is a point on which all the four schools of thought agree; a rare agreement indeed
which reveals the importance of delivering ill-gotten wealth to its real owners.

• Responsibility to Return: The primary emphasis is on the responsibility of the person who
possesses wealth obtained through unethical means (ill-gotten wealth).
• Real Owners: The rightful owners of the wealth are identified as the "real owners", implying
they were deprived of it unjustly.

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• Unanimous Agreement: The statement highlights the "rare agreement" among all four
schools of Islamic thought (e.g., Hanafi, Maliki, Shafi'i, Hanbali) on this specific point.
• Importance of Returning: The "rare agreement" underlines the critical importance of
returning ill-gotten wealth to its rightful owners.
Al-Mawsooa’ al-Fiqhiyyah has stated that:

It is obligatory in the case of haram wealth to return it to its owners if their identity is
known. If they are not known, all of it should be taken out from the holder’s possession as
a mean of getting rid from it, not with the intention of giving it as sadaqah [with intention
of reward]. This point is agreed upon by all the schools.

The passage describes a key principle in Islamic finance regarding haram wealth (ill-gotten
gains). Here's a breakdown of the precise meanings:

• Haram Wealth: This refers to wealth acquired through means forbidden in Islam, such
as theft, usury (interest), or fraud. Such wealth is considered impure and unlawful.
• Obligatory to Return: If the rightful owners of the haram wealth can be identified, it
becomes obligatory for the holder to return it to them. This ensures justice is served and
the ill-gotten gains are rightfully returned.
• Unknown Owners: If the rightful owners are unknown, the holder cannot simply keep
the wealth.
• Taking it Out: The passage states that the haram wealth should be taken out of the
holder's possession. This doesn't necessarily mean discarding it.
• Getting Rid Of: The purpose of taking it out is to remove the burden and responsibility
of possessing haram wealth.
• Not Sadaqah: The passage clarifies that the intention shouldn't be to give the wealth
away as Sadaqah (voluntary charity) seeking reward. This is because Sadaqah is typically
given from one's own lawful wealth.
• Agreed Upon: This emphasizes that this principle is widely accepted by all major
Islamic schools of jurisprudence.

Essentially, the passage outlines the Islamic approach to dealing with haram wealth:

1. Return to Rightful Owners: If possible, the wealth should be returned to those who
were wronged.
2. Removal from Possession: If the owners are unknown, the holder cannot benefit from
the haram wealth. They must relinquish it.
3. Disposition of Wealth: The specific way the wealth is disposed of might vary depending
on the scholar's interpretation. Some possibilities include:
o Donating it to public benefit projects (e.g., building mosques or schools).

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 o Using it for social causes that benefit the community.

Read The above should suffice to explain the strict stance of Islam about wealth earned from
illegal haram sources. It should also be noted that the above provision of returning the haram
wealth to its owner or channeling it to sadaqah is subject to different conditions explained by
Muslim scholars in detail. Similarly, the above provision is related to the case when the entire
amount of wealth is made up of ill-gotten means with no halal portion of wealth in it. As stated by
Imam Ghazali: ‘If the wealth in one’s possession is exclusively haram, he is not obliged to perform
hajj or pay zakat . . .’ He further explains what should be done with wealth that is totally haram:

If a person possesses haram wealth and he intends to repent [for it] and purgation, if the
owner of this wealth is known, it should be returned to him or to his agent. But if he has
already passed away, it should be paid to his/her heirs. But if its owner is not known and
the possessor is hopeless to find him or her, he should spend it in the channels of general
interest of the Muslims.

This is generally the ruling of wealth that is purely haram. However, the provision of wealth which
is a mixture of both halal and haram is different as elaborated next.

2.2.2. Purification of Wealth Part of Which is Haram

Muslim scholars have treated wealth that is a mixture of both halal and haram somewhat differently
with further details. Generally, Muslim scholars say that if the wealth is a mixture of halal and
haram properties and the portion of haram is removed from the portion of halal then the remaining
wealth becomes entirely halal. They mainly rely on the Quranic injunction which reads:

‘But if you repent, you may have your principal –[thus] you do no wrong, nor are you
wronged’ (2: 279).

• Mixed Wealth: This refers to wealth that includes both halal and haram elements. This could
happen through inheritance, accidental mixing, or unknowingly engaging in a forbidden
transaction.

• Separation of Haram Portion: Scholars generally agree that if the haram portion of the mixed
wealth can be identified and separated, the remaining halal portion becomes permissible to use.

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• Quranic Basis: The scholars rely on verse 2:279 from the Quran. Here's a breakdown of the
verse:

• "But if you repent..." - This establishes the importance of regret and seeking forgiveness
for engaging in the forbidden act that led to haram wealth.
• "...you may have your principal..." - This suggests that the core, original (halal) portion of
the wealth can be retained after removing the haram element.
• "...[thus] you do no wrong, nor are you wronged" - This implies that by separating the
haram portion and repenting, a person avoids further wrongdoing and is not burdened by
the consequences of the past transgression.

Imam Ibn Qayyim says

‘the process of repentance for the person whose halal wealth is mixed up with non-halal
wealth (and it can’t be distinguished what is halal and haram portions) is to separate the
value of non-halal portion. Hence the remaining portion will become Tayyib (Clean/Halal)’

The passage describes a specific situation in Islamic finance related to separating mixed halal
and haram wealth. Here's a breakdown of the key terms:

• Halal: This refers to anything permissible or lawful according to Islamic law (Shariah).
• Haram: This refers to anything forbidden or unlawful according to Shariah.
• Tayyib: This translates to "pure" or "clean" and signifies wealth that is permissible to use
in Islam.

The passage outlines the repentance process for someone whose halal wealth becomes mixed
with haram wealth in an indistinguishable way. Here's how it works:

1. Estimating Haram Portion: The key step involves estimating the value of the haram
portion that got mixed with the halal wealth. This estimation should be done with a sincere
and honest effort.
2. Separation of Value: Once the estimated value of the haram portion is determined, that
amount needs to be separated conceptually. This might involve setting aside money or
dedicating it to charity.
3. Remaining Portion Becomes Tayyib: After separating the estimated haram value, the
remaining portion of the wealth is considered tayyib (clean/halal). This is because the
person has made a sincere effort to rectify the situation.

Hence, the scholars are unanimous on the point that once the non-halal portion of wealth has been
taken out and either given to its owner if he/ she is known, or channeled as sadaqah for him/her, if

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he is not known, the remaining portion of wealth becomes halal and there is absolutely no harm in
using it. However, Ibn al-Arabi has rejected the notion that wealth proportioned in such manner
will not become halal but will still be haram; thus, it is preferable to refrain from such wealth.

• Non-Halal Portion: This refers to the portion of wealth acquired through unethical or forbidden
methods according to Islamic law (Shariah). Examples include usury (interest) or money earned
through theft.
Unanimous Agreement: Most Islamic scholars (ulama) agree that this non-halal portion must
be removed from the wealth.
Returning to Rightful Owner: If the rightful owner of the non-halal portion is known, it
should be returned to them.
Sadaqah (Charity): If the owner is unknown, the non-halal portion should be channeled as
charity (sadaqah) for their benefit. This act removes the taint from the wealth.
Remaining Wealth: Once the non-halal portion is removed or given away as charity, the
remaining wealth becomes considered halal (permissible).
Ibn al-Arabi's Dissent: One scholar, Ibn al-Arabi, seems to disagree. He argues that even after
removing the non-halal portion, the remaining wealth might still be considered haram.
Recommendation: Due to this differing opinion, the passage suggests it's preferable to avoid
acquiring wealth through such methods altogether.
He states in Ahkam al-Quran:

Some extremists among those who claim to be pious view that once halal wealth is mixed
up with haram wealth and the two cannot be differentiated, but then the amount of haram
mixed up in it is taken out from the wealth, it is still not halal or good. They argue that it is
still possible that the portion taken away from mixed wealth was halal and the remaining
portion is haram. This (opinion) is exaggeration in [matters of] religion because the
objective in (separation of) what cannot be differentiated is its value and not the actual
object/ cash/asset. This is why if it is destroyed, its equivalent will replace it. Mixing up is
the destruction of differentiation, just as consumption is the destruction of the
object/cash/asset. And the replacement stands instead of what has perished which is
obvious in clarity and concept.

Scenario: Imagine someone has halal (permissible) wealth that gets mixed with haram (forbidden)
wealth, and it's impossible to distinguish between the two portions.

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Extremist View: Some people with a strict interpretation (who claim piety) argue that even if you
remove the exact amount of haram wealth from the mixture, the remaining portion is still not
considered halal.

Reasoning of Extremists: Their concern is that the portion removed might have been the halal
part, leaving the remaining portion as haram.

Opposing View (Main Argument): The passage argues against this extremist view, calling it an
exaggeration in religious matters. Here's why:

• Focus on Value, not Object: Islamic law emphasizes the value of the wealth, not the
physical object itself (cash or asset).
• Replacement Principle: If the mixed wealth is destroyed, it's Islamically permissible to
replace it with an equivalent amount. This principle highlights the importance of value, not
the specific object.
• Mixing as Destruction: Mixing halal and haram wealth is seen as the "destruction" of
differentiation between the two types of wealth.
• Consumption as Destruction: Similarly, consuming wealth destroys the physical object
itself.
• Replacement for What is Lost: In both cases (mixing and consumption), the principle of
replacement applies. You replace the lost value (mixed wealth) or the consumed object
with something of equal value.
• Clarity and Logic: The passage emphasizes that this reasoning is clear and logical.

Some views of Muslim scholars of the past on how to purify the wealth with a non-halal portion
mixed up within it are given below to shed light on the matter. Imam al-Qurtabi expresses his
opinion on the matter as thus:

The way to repent from the haram wealth in one’s hand, if it is earned through riba, is to
return it to the person from whom it is taken. If he is not present, he should search for him
and if he is hopeless about his existence, he should give this wealth as sadaqah from his
side. If he has taken it by any unjust manner, he should do the same regarding the person
he has done injustice to. Then, if he is doubtful about the matter and he does not know how
much is the portion of haram and halal wealth in his possession, he should ponder (to
separate) over the amount in his possession that he is obligated to return [i.e. haram] until
he has no more doubt that whatever is left is pure. Afterwards, he should return this

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 separated amount from his possession to the person he knows he has done injustice to or
received as riba from. But if he is hopeless about his existence, he should give it as sadaqah
from his side.

1. Returning Riba:

• If identifiable: The first step involves returning the riba to the person from whom it was
taken. This ensures the original owner receives their rightful due.
• Searching for the recipient: If the original recipient cannot be located, a sincere effort
must be made to find them. This demonstrates genuine remorse for the wrongdoing.

2. Hopeless about Recipient's Existence:

• Giving Sadaqah: If finding the recipient is truly hopeless, the riba should be given as
Sadaqah (charity). This act of charity aims to compensate for the sin of taking riba.

3. Unjustly Acquired Wealth:

• Similar Process: The same steps above apply if the wealth was obtained through any other
unjust manner. This emphasizes the importance of rectifying all forms of wrongdoing.

4. Doubtful Origin of Wealth:

• Estimating Haram Portion: If a person is unsure about the mix of halal (permissible) and
haram wealth they possess, they must make a sincere effort to estimate the haram portion.
This requires reflection and an honest attempt to separate the two types of wealth.
• Removing Doubt: The estimation process should continue until there is no reasonable
doubt remaining. This ensures that only the haram portion is returned.

5. Returning or Giving Sadaqah:

• Identified Recipient: Once the haram portion is separated, it should be returned to the
person who was wronged. This restores their rightful ownership.
• Unknown Recipient: If the recipient cannot be identified, the haram wealth becomes
Sadaqah. Giving it to charity helps offset the sin of possessing it.

Overall, the passage emphasizes the importance of:

• Rectifying wrongdoing: Returning the ill-gotten wealth is essential for genuine

repentance.

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 • Seeking forgiveness: While the passage focuses on actions, it is also implied that seeking
forgiveness from God is crucial.
• Preventing future sins: By taking these steps, an individual demonstrates their
commitment to avoiding haram means of acquiring wealth.

Imam al-Nawawee cites al-Ghazali as a source for this provision stating that

If a person has wealth usurped from people in his possession and its portion is known, but
it got mixed up with his own wealth (which is halal) and cannot now be differentiated and
the person intends to repent, the solution is that he and the owner of usurped wealth should
agree to distribute (this mixed wealth according to their respective portions). If the owner
of usurped property refused to do so, the other party should take the matter to judge to
separate the usurped portion. If he does not find a judge, he should make a pious person as
arbitrator to separate it. If he is still unable to find one, he should undertake the task himself
. . . Once he has done so, the remaining portion is halal for him.

• Usurped Wealth: This refers to money or possessions obtained through unlawful means,
such as theft, fraud, or excessive interest (riba).
• Mixed Wealth: The usurped wealth has become indistinguishable from the person's own
halal wealth.
• Repentance: The person intends to rectify their mistake and return the stolen portion.

The solution involves a tiered approach:

1. Agreement with Owner (Preferred):

o If the rightful owner of the usurped wealth can be identified and their share is
known, the ideal solution is to reach a mutual agreement on how to distribute the
mixed wealth according to their respective portions. This can involve returning the
exact amount taken or dividing the mixed wealth proportionally.
2. Seeking Judicial Separation:
o If the owner refuses to cooperate or cannot be found, the person with the mixed
wealth should seek a judge's help to separate the usurped portion.
o A judge with knowledge of Islamic law can use their expertise to determine a fair
method of separation, potentially based on estimations or historical records.
3. Arbitration by Pious Person:

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 o If a judge is unavailable, the person can approach a respected and religious
individual (a "pious person") to act as an arbitrator and help separate the usurped
portion.
o This person's role is to find a fair and Islamically compliant solution based on the
available information.
4. Self-Estimation (Last Resort):
o As a last resort, if neither a judge nor an arbitrator can be found, the person with
the mixed wealth must make a sincere and good-faith effort to estimate the usurped
portion themselves.
o This involves careful consideration of the amount taken and any relevant details
about the mixed wealth.
5. Remaining Wealth is Halal:
o Once the usurped portion has been separated (through agreement, judicial order,
arbitration, or self-estimation), the remaining wealth is considered halal for the
person to keep.
o They have fulfilled their obligation to return the stolen money and can rightfully
use the remaining portion.

A study of this issue in the classical Islamic literature reveals that scholars of the past have
addressed this issue. There are different cases of wealth mixing up laid down by them and,
accordingly, they have also detailed certain conditions/restrictions for every case. They have, for
instance, given detailed rulings with respect to the contract under which haram wealth is acquired,
for example, the contract of riba and so on. They have also discussed: will the haram earning be
returned to its owner if the party from which such wealth has been acquired has already received
the reward for it?

The importance of this centuries old debate has become clear in today’s world. With the emergence
of Islamic finance, the issue of non-halal income or portion of wealth is discussed frequently and
the ways and means of its channeling are now made a part of the regulation of the Islamic finance
industry. Even bodies such as Accounting and Auditing Organization for Islamic Financial
Institutions have addressed the subject and issued resolutions and standards regarding it.

What if the haram portion of wealth is small in scale?

Scholars have further elaborated that if the haram portion in the wealth cannot be separated and
the portion is small then this haram portion is considered halal in necessities. Scholars mainly rely
on legal maxims like: ‘Hardship begets facility’, ‘The minor portion of haram is forgiven in most

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of the rulings’. A typical example of this would be the issue relating to the shares of companies
that in nature carry halal business; however, it is obliged to carry out some non-halal activities.
Now the question is what is the relative portion of haram which is forgiven? And what needs to be
done with this haram portion?

• Haram Portion in Wealth: This refers to money or assets acquired through means
prohibited in Islam, such as usury or gambling.
• Separation Difficulty: The passage acknowledges that sometimes separating the haram
portion from the overall wealth might be impractical or impossible.
• Small Haram Portion: If the haram portion is relatively small compared to the total
wealth, some scholars provide a concession.

Legal Maxims for Concession:

The passage mentions two legal maxims (usul al-fiqh) used by scholars to justify this concession:

• "Hardship begets facility" (al-mashaqa tajlibu al-taiseer): This principle allows for
some flexibility in following religious rulings when undue hardship is involved. In this
case, separating the haram portion might be too difficult.
• "The minor portion of haram is forgiven in most of the rulings" (yu'fa bil-qalil fi al-
kathir): This maxim suggests that a small amount of something impermissible can be
tolerated when it's mixed with a larger permissible amount.

Unresolved Questions:

The passage also acknowledges some uncertainties:

• Relative Portion of Haram Forgiven: There's no clear consensus on the exact size of the
haram portion that can be considered negligible.
• Action Required for Haram Portion: The scholars don't provide a definitive solution on
how to address the remaining haram portion if it's too small to separate.

To answer the first question, we would say that the differences of opinion among Muslim jurists
is due to the differences in time, circumstances and places. That is why it is recommended to
consult a scholar of jurisdictions accordingly. For example, some fuqaha in Arabic jurisdictions
opined that 25 per cent of haram is forgiven given the supporting argument for this claim. This
implies that exceeding the 25 per cent level will render the ruling and makes the haram portion not
being forgiven by Shariah. The Shariah Advisory Council (SAC) of Securities Commission

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Malaysia in its revised Shariah-screening methodology adopted two rules as benchmarks, 5 and
20 per cent respectively, for computing the non-permissible activities and comparing with the
group turnover before taxes

Business activity benchmarks.

The 5 per cent benchmark would be applicable to the following business activities:

▪ Conventional banking,
▪ Conventional insurance,
▪ Gambling
▪ Liquor and liquor-related activities
▪ Pork and pork-related activities,
▪ Non-halal food and beverages,
▪ Shariah non-compliant entertainment
▪ Interest income from conventional accounts and instruments
▪ Tobacco and tobacco-related activities, and
▪ Other activities deemed non-compliant under Shariah

The 20 per cent benchmark would be applicable to the following activities:

▪ Hotel and resort operations.

▪ Share trading.
▪ Stockbroking business.
▪ Rental received from Shariah non-compliant activities; and
▪ Other activities deemed non-compliant according to Shariah.

The contribution of Shariah non-compliant activities to the overall revenue and profit before tax
of the company will be calculated and com- pared against the relevant business activity
benchmarks. To avoid the misuse of their rulings, scholars have put some conditions for such small
portion that is forgiven by Shariah.

1. The first condition imposed by the scholars suggests that the portion of halal should exceed
the portion of haram. That is how it comes under the ruling of the ruling is as for the
majority.

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 2. It must not be possible to distinguish between halal and haram wealth and it is so because
of the legal (regional or international) or other constraints.
3. The intention of such transactions should be halal since the intention is the main base of
reference of Ibadat and Muamalat as reported in the Hadith of Bukhari and Muslim:
Indeed, the actions are ruled as per the intention.

There should be real need for such an action and the situation should lead to that decision. This
due to the fact that this is actually an exception from general ruling of transacting with halal. That
is how it comes under the ruling of ‘hardships begets facilities’.

To answer the second question of what needs to be done with haram portion of haram wealth, we
would say that there are some specific areas in which the haram portion will be spent. This includes
spending such money to help poor Muslim countries for education and technological
developments, to help Muslim prisoners for their release, financial support of orphans and those
in need, and to build hospitals and to spend money in their needs for the benefit of the poor.
However, the portion of haram cannot be spent to build Masjid and places to perform Islamic
rituals.

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