What is the ruling on working in a bank based on usurious loans?

Original answer — Shaykh ‘Abd al-‘Aziz ibn Baz

Question

«كنت في مصر أعمل في أحد البنوك التابعة للحكومة، ومهمة هذا البنك إقراض الزراع وغيرهم بشروط ميسرة، لمدة تتراوح من عدة شهور إلى سنوات، وتصرف هذه السلف والقروض العينية والنقدية نظير فوائد وغرامات تأخير، يحددها البنك عند صرف السلف والقروض؛ مثل ٣% أو ٧% أو أكثر من ذلك زيادة على أصل القرض، وعندما يحل موعد سداد القرض، يسترد البنك أصل»

English translation (unreviewed): I was in Egypt working in one of the government banks, and the task of this bank was to lend to farmers and others on easy terms, for periods ranging from several months to years, and these advances and loans in kind and cash were disbursed in return for interest and late fees that the bank specified when disbursing the advances and loans, such as 3% or 7% or more over the principal of the loan; and when the loan's due date came, the bank would recover the principal ...

(excerpt from the question)

From the text of the answer

«عمل هذا البنك بأخذه الفوائد الأساسية والفوائد الأخرى من أجل التأخير كلها ربا، ولا يجوز العمل في مثل هذا البنك؛ لأن العمل فيه من التعاون على الإثم والعدوان، وقد قال : وَتَعَاوَنُواْ عَلَى الْبرِّ وَالتَّقْوَى وَلاَ تَعَاوَنُواْ عَلَى الإِثْمِ وَالْعُدْوَانِ وَاتَّقُواْ اللّهَ إِنَّ اللّهَ شَدِيدُ الْعِقَابِ [المائدة:٢].»

English translation (unreviewed): The work of this bank in taking the basic interest and the other interest for delay is all riba, and working in such a bank is not permissible, because working in it is cooperation in sin and transgression. He said: “Help one another in righteousness and piety, and do not help one another in sin and transgression, and fear Allah; indeed Allah is severe in punishment” [al-Ma'idah: 2].

Evidence as the shaykh cited it

«وفي الصحيح، عن جابر بن عبدالله، عن النبي ﷺ: أنه لعن آكل الربا، وموكله، وكاتبه، وشاهديه، وقال: هم سواء [١] .»

English translation (unreviewed): And in the Sahih, from Jabir ibn 'Abdillah, from the Prophet ﷺ: that he cursed the one who consumes riba, the one who feeds it, its writer and its two witnesses, and said: “They are all the same” [1].

«رواه مسلم.»

English translation (unreviewed): Reported by Muslim.

«أما الرواتب التي قبضتها فإنها حل لك إن كنت جاهلًا بالحكم الشرعي؛ لقول الله سبحانه: وَأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَن جَاءهُ مَوْعِظَةٌ مِّن رَّبِّهِ فَانتَهَىَ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللّهِ وَمَنْ عَادَ فَأُوْلَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ ۝ يَمْحَقُ اللّهُ الْرِّبَا وَيُرْبِي الصَّدَقَاتِ وَاللّهُ لاَ يُحِبُّ كُلَّ كَفَّارٍ أَثِيمٍ ۝ [البقرة:٢٧٥-٢٧٦].»

English translation (unreviewed): As for the salaries you received, they are lawful for you if you were ignorant of the Shari'ah ruling, because of the saying of Allah, Glorified: “Allah has permitted trade and forbidden riba. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in riba] — those are the companions of the Fire; they will abide eternally therein. Allah destroys riba and gives increase for charities, and Allah does not like every sinning disbeliever” [al-Baqarah: 275-276].