Proper Method for Money Transfer (Hawala)

Authored by: Fatwas of the Saudi Fatwa Committee

The correct methods for transferring money (Hawala) are as follows:

1. Transfer in Original Currency:
   
   • The amount is sent in its original currency (e.g., dirhams) to the destination.
   • Once it reaches the other location, it can be exchanged at the current exchange rate.
2. Purchase the Currency in Advance:
   
   • The currency of the destination country is purchased in the sender's country.
   • The purchased currency is then sent directly to the destination country.

These methods ensure that the transaction complies with Islamic principles, avoiding ambiguity or deferred payments that could lead to impermissible practices.

[Reference: Ibn Uthaymeen, Liqaa Al-Bab Al-Maftuh, Vol. 16, Page 44]