Normally, working for a usurious bank is prohibited. This is endorsed by the Permanent Committee for Research and Fatwa and Shaikh Abd al-Azeez ibn Baz. Decision 7-5 of the Assembly of Muslim Jurists of America suggests making an exception for jobs that do not involve dealing directly with usury, which includes preparing documentation, acting as a witness or providing any help or service, if one needs to take up such a job because one cannot find a legitimate job elsewhere.

Contemporary scholars have given two different opinions on this question. The first view, which is the view of the majority of scholars, including the Islamic Fiqh Council and Shaikh Muhammad ibn Uthaimeen and other scholars, makes it forbidden for a Muslim to buy a house through usurious financing in any situation.

Scholars have two different views regarding taking the interest from one’s bank account and giving it to charities. The first view considers that it is not permissible to deposit one’s money in a usurious bank in the first place. If one finds it necessary to do so in order to keep his money safe and he does not receive interest on it, then there is no harm. However, if the account earns interest, then it is not permissible. If he uses the funds that represent the interest, out of ignorance or carelessness, and then repents he should give the money to charity and not add it to his own account. This is the view of Shaikh Abd al-Azeez ibn Baz.

It is permissible for a Muslim to become a partner in a commercial company when the source of funds provided by other partners may vary, with some legitimately earned and some borrowed at interest. However a condition applies here: The loans must not be secured against a mortgage of the company’s assets. Moreover, the Muslim partner must have the authority to run the business, or to be able to monitor its activities to ensure that they are consistent with Islamic law. This is the ruling stated in Fatwa No. 1-16 of the European Council for Fatwa and Research. The late Shaikh Abd al-Azeez ibn Baz said in his relevant fatwa: In principle, it is permissible for a Muslim to be in partnership in a commercial enterprise with a non-Muslim, provided that such partnership does not lead to a relationship of alliance or to commit or neglect something God has forbidden or made obligatory. Moreover, the Muslim partner should be the one who is in control. Nevertheless, it is preferable not to have such a partnership but rather to seek Muslim partners.

It is obligatory for a Muslim who is earning wages through the work he does to inform the relevant government authorities of this. It is forbidden for a Muslim to claim unemployment benefit while he is in work unless his earnings are within the low-pay limits the government allows for those who are employed. This is the ruling of the European Council for Fatwa and Research.