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The question

Are the distributed profits from a Canadian company that deals with usurious banks, both in deposits and loans, considered unlawful (haram)?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

For investment in such companies to be permissible, two conditions must be met: the activity must be permissible, and the company must not deposit investors' funds in interest-bearing banks to collect interest, nor should it borrow with interest. Since this company falls into the second forbidden category, it is prohibited for a Muslim to invest in it, and the distributed profits are unlawful because they are forbidden usurious interest. Allah (SWT) says: "O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers. And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal – [thus] you do no wrong, nor are you wronged." It is obligatory to withdraw the money from the company and to dispose of the usurious interest by spending it on general Muslim welfare, such as charity. However, anything resulting from permissible work is lawful.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
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Ftawy
Original fatwa ID
57145
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy