Explaining how to dispose of the profits from an un-Islamic bank transaction

The questioner:
Honorable Shaykh, may Allah grant you success. This question says: A person dealt with the bank in a transaction where he bought iron from the bank, but he did not see it, nor did he take possession of it; rather, he bought and sold it within the bank and benefited from the amount through trade. Then he learned that the transaction was not permissible, so he disposed of it, but the interest remained on him. His question is: Is it permissible for him to give this interest in charity to the poor, or must he pay it off?

The Shaykh:
They compel him to pay it. May Allah forgive him; this is a good thing, but they are not forgiving him; they compel him strictly. However, if he repents to Allah the Exalted and does not keep this money for himself, but rather disposes of it by placing it in projects for those in need, then that clears his conscience. Yes.

The questioner:
Then he says, may Allah preserve you: As for the trade he obtained through this debt, he asks: Is it permissible for him to pay off a debt owed by his father with this money?

The Shaykh:
No, he must dispose of it by placing it in a general project, like lost money. This is like lost money; he places it in a general project. Yes.