The aim of this paper is to explore the ethical dimension of hawala, an ancient informal financial practice rooted in Islamic moral traditions. Widely used in countries with an Islamic background and their diasporas, hawala is considered an important vehicle for the financial and economic development of some less developed countries. Nevertheless, in Western countries, hawala is regarded with suspicion due its controversial ethical nature. Unlike other Islamic financial institutions, the controversial questions are not the legitimacy of (...) profit sources or the interest charged, but rather the lack of transparency that surrounds hawala transactions. Yet, the literature on hawala has neglected its ethical perspective. Our study delves into this dimension with a critical approach, using the Triple Font Theory, grounded on virtue ethics. We conclude that if hawala transactions are carried out with honesty, and fairness, this practice deserves a positive ethical appraisal. However, it is necessary to implement efficient regulatory measures to guarantee that the system is not abused by money launders and criminals. In practice, it becomes imperative to bring over a change in the regulatory approach to hawala toward a more ethically, culturally, and economically sensitive strategy. Thus, future research should focus on how “hyper-norms” or fundamental principles inherent to humanity, which are common to both “formal” and “informal,” “Western” and “non-Western” financial practices, could run the new AML/ctf regulation agenda. (shrink)

The law of responsibility (compensation), which was formed around the concept of the ḍamān and was developed by the scholars within the system of furû‘ al-fiqh (substantive law) over time, constitutes one of the important parts of Islamic law. Although compensation law (ḍamān) was not addressed as a private subject in the first period fiqh literature, it is seen that the literature on this specific area started to emerge after the early period. It is the Hanafi jurists who first brought (...) together these issues that are scattered in the classical books of fiqh that are related to the law of responsibility. Compensation law took its classical form in the texts of the early periods and was shaped around the views of the founding imams of the Ḥanafī school (madhab). It has later been expanded with the fatwā and interpretations of the Sheikhs (mesāikh) of Hanafi in the type of waqi'at works. These works were a product of the need for the law to adapt to the new conditions. These issues, which are related to the compensation law in the Hanafi school have been covered as a special section (chapter) in the studies that are classified as waqi'at, such as Usrūshanī’s al-Fuṣūl fī al-muʿāmalat (Fuṣūl al-Usrūshanī), ʿImād al-Dīn al-Marginānī’s Fuṣūl al-iḥkām fī uṣūl al-aḥkām and Shaykh Badr al-Dīn’s Jāmiʿal-Fuṣūlāyn. Later, the topics discussed in these works were developed and continued, and ultimately separate works related to this field have been copyrighted. In this study, the kinds of development and expansion which are in the literature and related subjects will be discussed by examining the above-mentioned works. Therefore; first of all, the first examples of Hanafi jurists related the compensation will be analysed comparatively. Afterwards, the place of ad-Ḍamānāt fī al-furūʻ al-Ḥanafīyyah of Fuḍayl Chalābī (d. 991/1583), one of the Zenbillizade’s, will be addressed.Summary: The core idea of the law of responsibility, which constitutes one of the important parts of Islamic law, was stated in the Qur'an and Hadith, and then have accumulated by the contributions of the jurists (fuqaha), as they developed the idea of the law of responsibility within the furû‘ al-fiqh in relation to the systematic of the legal school (madhab) that they belonged to.These issues, which constitute one of the important parts of the law, were addressed by sprinkling among the topics in almost every part of classical fiqh books. In other words, the subject of ḍamān (responsibility) was not considered as a separate subject in the fiqh works of the first period. In this way, it is seen that the literature on compensation law started to emerge in the following periods, and at first several independent sections on this subject, and then separate works specific to this field, albeit limited in number, were written.It is the Ḥanafī jurists who first brought together these issues that are scattered in the classical fiqh books related to the law of responsibility. Compensation law, which took its classical form in the texts from early periods, shaped around the views of the pioneering imams of the Ḥanafī school, has been expanded with the fatwā and interpretations of the Sheikhs (mesāikh) of Ḥanafī in the waqi'at works, which is a product of the need for the law to adapt to new conditions. Firstly, one of the Ḥanafī jurists, Majd al-Dīn al-Usrūshanī (d. 637/1240) dealt with the responsibilities arising from the contract and unfair acts in the 29th section of his book named al-Fuṣūl fī al-muʿāmalat under the title “Types of Compensation Required to be Paid and Their Situation”. The method and system that Usrūshanī started in this work, the Ḥanafī jurisits ʿImād al-Dīn al-Marginānī in the Fuṣūl al-iḥkām fī uṣūl al-aḥkām and Shaykh Badr al-Dīn Ibn Qāḍī Samāwnā in the Jāmiʿ al-Fuṣūlāyn continued to develop the compensation section in their books. Afterwards Fuḍayl Chalābī (d. 991/1583), one of the members of Zenbillizade’s family, enriched these issues and made it an individual work, named ad-Ḍamānāt fī al-furūʻ al-Ḥanafīyyah. Marginānī titled the issues that Usrūshanī had handled in the compensation section and systemised it even more by gathering the fatwās on the related issues under one heading. It is noteworthy to mention that when the compensation sections of both works are compared, the way the subjects handled are exactly the same. But unlike Usrūshanī, Marginānī added the compensation for damages to the fetus in the womb and the responsibility of the person who brought back the fleeing slave at the end of the chapter. On the other hand, unlike them, Shaykh Badr al-Dīn added only the responsibility of the person who found the lost item. Considering that almost all of the topics in the compensation section of Sheikh Badr al-Dīn existed exactly in the compensation section of Marginānī, and that most of them were stated in Usrūshanī’s al-Fuṣūl, it is necessary to say that all of these discussions are based on Usrūshanī as the main backbone of this particular subject and that his work has a unique place in the Islamic legal literature. Chalābī’s ad-Ḍamānāt, is the first work that was written as a separate book in the field of compensation law. Even though in some modern works claim that the work Ghānim al-Baghdādī’s (d. 1030/1620) book named Majma‘ al-ḍamānāt fī madhhab al-Imām al-A'zam Abī Ḥanīfa al-Nu'mān was the first written book in this field; it is known that Chalābī's ad-Ḍamānāt had been written before Baghdādī’s Majma‘ al-ḍamānāt. As a matter of fact, the work of Chalābī had been completed in 984 Hijra, and the Baghdādī’s Majma‘ al-ḍamānāt was completed in 1027 Hijra. Although the subject sequence in Baghdādī’s work is different; this work is regarded as a continuation of the same tradition.An examination of the systematic and the content of the work reveals that Chalabi’s ad-Ḍamānāt is the continuation of the type of writing that Usrūshanī started and developed by Marginānī and Shaykh Badr al-Dīn. When compared with the compensation sections of these works before him, Chalābī has added new compensation issues to his book that are not addressed in these three works; such as partnership, mudaraba, suretyship (kafāla) transfer (ḥawāla), peace, legal disability (hajr), freedom of trade (idhn) and testament. Among the works mentioned above, works out of Shaykh Badr al-Dīn’s Jāmiʿ al-Fuṣūlāyn and Baghdādī’s Majma‘ al-ḍamānāt are available as manuscripts in the libraries. Therefore, these works have not been used much in modern studies on compensation. In addition, the Chalābī's ad-Ḍamānāt is almost unknown. Although there is little information about this work in some bibliographic studies, it is noteworthy to state that this work is not used as a source in contemporary studies written in Arabic on compensation law. The fact that this work is available as manuscripts in Istanbul libraries is probably the reason for this outcome. It is also very difficult to say that this work is known and used sufficiently in studies written in Turkish.Usrūshanī’s al-Fuṣūl fī al-muʿāmalat and Marginānī’s Fuṣūl al-iḥkām are currently in the form of manuscripts, so there is no comprehensive study on the whole work and the compensation section. It is possible to see the compensation issues discussed in the work, since Shaykh Badr al-Dīn’s Jāmiʿ al-Fuṣūlāyn, which has been published as printed, was translated into Turkish by an editorial group under the presidency of H. Yunus Apaydın. In addition, Kemal Yıldız, who translated the compensation section in this translation, published this section in Jāmiʿal-Fuṣūlāyn as a separate book with the name of “Sources of the Jāmiʿ al-Fuṣūlāyn and Compensation in the Practice of Ḥanafī School”. Yıldız, first introduced the sources of the Jāmiʿ al-Fuṣūlāyn in the first part of this work and then translated the compensation section from beginning to end by adding his own explanations and evaluations around the subject during the second part. Even though some introductory information about the books of Usrūshanī and Marginānī is presented in Yıldız’s study, the absence of information on the contents of the compensation sections of these books does not allow the opportunity for the researchers to evaluate on the subject wholly. (shrink)