JURISTIC METHODS OF PURIFYING HARAM INCOMES: AN ANALYSIS IN THE CONTEXT OF ISLAMIC BANKS IN MALAYSIA

Abstract

This study attempts to articulate juristic mechanisms by which
Islamic banks in Malaysia can purge the unlawful income from their
assets. An Islamic bank being a modern corporate entity when
dealing with people of diverse cultures and conventional business
entities, at times, feels the pressure of not being able to stay away
from transactions tainted with haram. Islamic banks as a matter of
principle should not involve themselves in any unlawful business
activities in the process of which they can procure unlawful incomes.
A question of how Islamic banks in Malaysia should treat such
incomes, both classical and contemporary jurists have proposed their
own set of juristic methods. This study recommends the Islamic banks
to address the importance of undertaking the purification process of
haram income according to Shari’ah.