The Ruling on the Zakah of Borrowed Money

The people's money that is in my liability, and more than two years have passed over it. Is the zakah obligatory on me or on its owners?
Answer: You do not have to pay the zakah on the people's money that is your liability, unless it is present with you in your possession and control. In that case, it is your money, not theirs; their money is in the liability. As for any currency or trade goods in your possession, even if they came to you through a loan or borrowing, you must pay the zakah on them when the lunar year of possession has passed.
As for the debts in your liability to the people, the zakah is on them if you are wealthy and willing to pay. If you are insolvent or delaying payment, then there is no zakah on them, as mentioned previously.