Benghazi – The Supreme Fatwa Committee of the Libyan Government issued a statement. The committee is part of the Ministry of Endowments and Islamic Affairs. They reviewed the “Tawa” financing service. Al-Wahda Bank offers this service.
The committee concluded the transaction is unlawful. They clarified the true nature of the transaction. The bank pays the price of a commodity chosen by the customer. It pays the merchant directly. This occurs without the bank first acquiring possession.