Ensuring Sharia Compliance: Learn About Purification Process
The dividends attributed to revenue generated from non-permissible business activities and interest income need to be purified.
Ensuring Sharia Compliance: Learn About Purification Process
The dividends attributed to revenue generated from non-permissible business activities and interest income need to be purified.
Ensuring Sharia Compliance: Learn About Purification Process
The dividends attributed to revenue generated from non-permissible business activities and interest income need to be purified.
What is purification?
What is purification?
Purification is the cleansing process that requires any investment profit that might have been generated from unlawful activities according to Islamic principles to be given to charity.
Purification is the cleansing process that requires any investment profit that might have been generated from unlawful activities according to Islamic principles to be given to charity.
Why are there unlawful activities in my Halal investments?
Some publicly traded companies generate a small percentage of their income from sources that are considered impermissible, such as interest earned on bank accounts or from secondary businesses in the hospitality or airline industries that offer adult entertainment or alcohol.
Shareholders should not benefit from this income and are advised to donate it to charity in order to counteract any negative impact from these non-permissible activities.
Some publicly traded companies generate a small percentage of their income from sources that are considered impermissible, such as interest earned on bank accounts or from secondary businesses in the hospitality or airline industries that offer adult entertainment or alcohol.
Shareholders should not benefit from this income and are advised to donate it to charity in order to counteract any negative impact from these non-permissible activities.
To account for this, purification totals are calculated on a fund basis by each fund manager in accordance with the guidelines set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
Although our portfolio manager OneVest follows strict Shariah-based AAOIFI guidelines when investing, shareholders are still advised to cleanse any impermissible income earned by companies by donating it to charity and should not benefit directly or indirectly from these donations. Manzil provides only purification calculation figures, which are conservative estimates and may not reflect the exact amount of income earned from non-permissible activities.
To account for this, purification totals are calculated on a fund basis by each fund manager in accordance with the guidelines set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
Although our portfolio manager OneVest follows strict Shariah-based AAOIFI guidelines when investing, shareholders are still advised to cleanse any impermissible income earned by companies by donating it to charity and should not benefit directly or indirectly from these donations. Manzil provides only purification calculation figures, which are conservative estimates and may not reflect the exact amount of income earned from non-permissible activities.
Manzil Invest clients are responsible for disbursing the amount of purification to their preferred charities or recipients. It may be paid in kind from any money they have in their checking and/or savings accounts. Clients bear all liability for any taxes and/or penalties that may be incurred when money is withdrawn from an account. Manzil is not responsible for any inaccuracies in the purification calculation figures or for the payment of purification from a specific account.
Manzil Invest clients are responsible for disbursing the amount of purification to their preferred charities or recipients. It may be paid in kind from any money they have in their checking and/or savings accounts. Clients bear all liability for any taxes and/or penalties that may be incurred when money is withdrawn from an account. Manzil is not responsible for any inaccuracies in the purification calculation figures or for the payment of purification from a specific account.
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Manzil Mortgage Services Inc. holds the following licenses: Ontario # 13411, British Colombia # MB601417, Saskatchewan # 512027, Nova Scotia # 2022-3000552, and Alberta.
© 2024 All rights reserved. Manzil is a registered trademark
Products
Services
Manzil Mortgage Services Inc. holds the following licenses: Ontario # 13411, British Colombia # MB601417, Saskatchewan # 512027, Nova Scotia # 2022-3000552, and Alberta.
© 2024 All rights reserved. Manzil is a registered trademark
Products
Services
Manzil Mortgage Services Inc. holds the following licenses: Ontario # 13411, British Colombia # MB601417, Saskatchewan # 512027, Nova Scotia # 2022-3000552, and Alberta.
© 2024 All rights reserved. Manzil is a registered trademark