Is it permissible to give ill-gotten money as a loan to relatives and then reclaim it from them?
The obligation upon someone who has acquired ill-gotten wealth is to dispose of it immediately, either by returning it to its owner if it was taken by force or theft, or by expending it for the benefit of Muslims if it resulted from a forbidden transaction such as usury or bribery. It is not permissible to benefit from it except out of necessity, and its acquirer does not own it in the first place. Therefore, it is not permissible to give this money as a loan. Rather, it can be given to the poor with the intention of disposing of it, not as charity or zakat, because Allah is good and accepts only what is good.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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