Is it permissible to give four thousand Egyptian pounds – which is interest from a usurious bank and may not be benefited from or given as zakat – to a needy person to relieve his hardship, then give it to another, so that this amount is allocated and circulated among the needy?

Unlawful money is not considered the property of its earner, according to the majority of scholars. He must dispose of it by returning it to its rightful owners if possible. Otherwise, he must give away all of it with the intention of disposal, not charity. Therefore, it is not permissible to merely lend it to those in need, because it is not his property, and lending is not considered a true disposal of unlawful money.