Ruling on taking ribaa from deposit accounts in kaafir banks

A similar question was sent to
the Standing Committee for Academic Research and Issuing Fatwas (al-Lajnah
al-Daa’imah li’l-Buhooth al-‘Ilmiyyah wa’l-Iftaa’). The text
of the question was as follows:

Al-Ummah
magazine has published a fatwa on financial matters conducted in western
countries and in daar al-harb [non-Muslim countries which are in a
state of hostility against Islam]. Imaam Abu Haneefah stated that it was
permissible to take riba from al-harbiyeen in daar al-harb,
and that every contract or transaction which was beneficialto Muslims was valid, so long as it was based on mutual consent and
involved no deception or betrayal. If this is true, it would be helpful to
some Muslims in France, because the donations that come to us stay in the
bank for months before the time comes to use them, and no one benefits
from the accumulating interest apart from the bank with which we are
dealing. If this fatwa is correct we can make use of the interest paid to
us on our money in daar al-harb, and at least give it to the poor and
needy, if no one else. And our intention is for the sake of Allaah.

 The Standing
Committee, under the leadership of Shaykh ‘Abd al-‘Azeez ibn Baaz (may
Allaah have mercy on him) replied as follows:

 Firstly, financial
transactions and mutual exchanges of benefits between us and the kuffaar
are valid so long as they meet the conditions of transactions set out in
Islamic sharee’ah.

 Secondly, dealing in
ribaa is absolutely haraam, whether it is among Muslims or between Muslims
and kaafirs, whether they are harbiyeen or not. And Allaah knows
best.