SS 7 – Hawalah

The aim of this standard is to explain the rulings, types, requirements and limitations of transfers (transfer of debts and transfer of rights), what is permissible or prohibited in this regard, and the applications of transfers in Islamic financial Institutions (Institution/Institutions).

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers Hawalah transactions that involve a change of debtor, i.e. transfer of debt. The scope of this standard does not cover banking remittances except the remittances that take the form of Hawalah (transfer of debt). 2. Definition of Hawalah Hawalah of debt is the transfer of debt from the transferor ( Hawalah of debt is the transfer of debt from the transferor (Muheel Muheel) to the ) to the payer ( payer (Muhal Alaihi Muhal Alaihi). The transfer of right, on the other hand, is a replacement ). The transfer of right, on the other hand, is a replacement of a creditor with another creditor. The transfer of debt differ from transfer of right in that in transfer of debt a debtor is replaced by another debtor, whereas in a transfer of right a creditor is replaced by another creditor. 3. Permissibility of Hawalah