Advising on interest transactions : advising on discounting letters of credit

Fatawa Question

As-Salaamu Alaikum Warah'matul-Laahi Wabarakaatuhuu Dear Dr. Kahf, May Allah bless you with the best of this month of Ramadan. A business investor recently approached me about having a standby letter of credit that he wanted to discount. I informed him that I did not deal in these because of the interest component, but that a business client of mine may be interested. I subsequently introduced them to each other. Though, I am not part of the deal they are making now, can I accept a commission for introducing them together to do a deal ? Would this be akin to dealing in Riba ? Ma'a Salaam Fawzi Amin Amadu

Fatwa

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Publication Date

2010-09-06

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Loans
• Usury
• Discount
• Transactions
• Commissioning(Islamic law)
• Letters of credit
• Advice

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-730641

• APA
• MLA
• AMA