The Ruling on Tawarruq from the Bank via Shares and Appointing It to Sell Them

Question:
May Allah bless you. This questioner asks about the ruling on borrowing from the bank through tawarruq (a commodity sale used to obtain cash) with shares, and the ruling on appointing the same bank to sell these shares?

Answer:
These are ruses, and these ruses are not permissible. If you perform tawarruq, you buy a commodity from the bank; you must take possession of it and move it from the bank’s location and sell it elsewhere, to someone other than the bank. To someone other than the bank. These are the conditions for the validity of tawarruq, despite the disagreement among some scholars. Shaykh al-Islam Ibn Taymiyyah and others hold that it is forbidden because it is a ruse to circumvent riba (usury or interest); they say it is a ruse to circumvent riba. But the majority say that it is permissible out of need, subject to conditions. First, the commodity must be in the possession of the seller before the sale. Second, the buyer must take possession of the commodity, move it from the seller’s location, and sell it himself elsewhere to someone other than the one from whom he bought it and borrowed from. Yes.