The Ruling on Dealing with Tawarruq with a Bank

Question:
The questioner says: I dealt with an Islamic bank in a tawarruq transaction, which was purchasing iron from a contracting company. When the transaction with the bank ended, I went to the company and received the check. What is the ruling on this transaction of mine?

Answer:
My brother, you did not complete the transaction. You bought the iron, so you must take possession of the iron. You must receive the iron and move it from the seller’s location to sell it to someone else in another location. As for this game of “we sell you iron, and we appointed someone to sell you iron, and we appointed someone to sell it, but there is no iron here.”
First, the iron must be in the seller’s ownership before the contract. Second, when you buy it, you must take possession of it. You must move it from the seller’s location to sell it to someone else. This is what is called the issue of tawarruq. Yes. There is disagreement regarding it; you see that some scholars forbid it, saying it is a ruse to reach riba (usury or interest), like Shaykh al-Islam Ibn Taymiyyah, who said it is a ruse to reach riba. But the majority say it is permissible for pressing need if its conditions are met. Yes.

The presenter:
May Allah reward you,