Banking: Silent Partnership Funded by Forged Bank Loan and Ribā Implications

Practical Laws of Islam as per the teachings of Imam Khamenei

Banking: Silent Partnership Funded by Forged Bank Loan and Ribā Implications

English:

Question #1909:

A person procured a sum of money from a bank to fund a silent partnership. However, they did so by presenting forged documents. It was agreed that the money would be returned to the bank, over a certain period of time, plus the surcharge. If the bank was unaware of the false documents, would the money be treated as a loan and the interest paid by the borrower as ribā? And what is the view if the bank was aware of the falsification of documents?

Answer #1909:

If the validity of the silent partnership contract depended on the genuineness of the documents that were the basis of the contract, the contract would be null and void. On the assumption that the documents were false, taking receipt of the money from the bank cannot be deemed a proper way of borrowing. Nor is it deemed a silent partnership. It would, instead, be considered a procurement of money by way of illegal transaction. Thus, it should be returned to the bank together with any profits made from trading thereof. This is so if the bank was unaware of the situation. If the bank official was aware of the falsity of the papers, the money obtained should be treated as usurped property.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Banking