From Haram to Halal Financing – An Islamic History Month Special
October is Islamic History Month, an opportunity to recognize the contributions and honour the rich history of Islam in Canada.
Our special Diversity Magazine/TV coverage for this Islamic Heritage Month is on Islamic Financing.
We had a sit down Interview with Thomas Lukszuk on October 6, 2022, at the Urban Lawyers Barristers & Solicitors in Edmonton to learn more about Halal Financing.
The circulation of money in a bank mixes all bank investments into one pot, from multiple sources including gambling and other sources that Muslims are forbidden to get involved in. As such, this commingling of money in a bank, couple with the fact that a third party is involved in insuring the bank loans, and banks charge interest on the loans, make banks un-fit to use as financial institutions by Muslims.
Bank money is described as Haram money by Muslims. Haram is an Arabic term meaning forbidden or unlawful. In the case of Islamic finance, Muslims cannot invest in, acquire, or otherwise engage in transactions that involve forbidden products and activities such as pork-related products, alcohol, gambling, and pornography.
Two Edmontonians; John Stainton and Thomas Lukaszuk, decided to do something to help Muslims through a certified Islamic Financing process – Halal Financing.
In Halal Financing, interest is not paid on loans, Islamic Foreclosure is practiced with the involvement of an Imam in some cases. No insurance on loans, no third party involvement in the financing process, each contract gets reviewed and is Sharia Law compliant.
This journey to Halal Financing for Thomas and John started when the Al Rashid Mosque in Edmonton was not able to get partners in 2019 to finance its Hahal Financing. They contacted Thomas, an Edmontonian who himself came to Canada as an immigrant from Poland in 1982. He lived in subsidized housing with a dream of owning his own home one day. Today, he’s helping people own homes through Halal Financing. Thomas became an MLA in Edmonton, and rose to the position of Deputy Premier of Alberta, before leaving politics.
Using his connections and people’s skills, Thomas put together a team of Canadian lawyers and Islamic scholars, drawn from the spectrum of Islamic scholars.
The Al Rashid Mosque asked Thomas to implement the program after finishing the Islamic Financing proposal – Canadian Halal Financial Cooperation was born on December 24, 2021. Thomas said after the launch of the program, by the following day, Christmas Day, they got 167 applications.
The Canadian Halal Financial Cooperation can help anyone with Halal financing, if they agree with the terms, ready to cough out 25% equity, and can make minimum monthly payments.
Halal Financing might be slightly more expensive than financing through traditional banks because of the complex administration processes requiring a Fatwa Committee to approve all loans, but it provides the religious validation that Muslims seek in the quest for a better after life.
The success of the Canadian Halal Financial Cooperation has attracted interest from eastern Canada and as far as the US.
When it’s community story, it’s on Alberta’s largest multicultural publication
