Structuring Financial Transactions: A Sharia and Legal Perspective

Abstract

      A thoughtful reader of the Qur’anic texts will find that they encourage adherence to ethics in all aspects of human life, including financial transactions, while condemning manifestations of moral deviation and corruption. The stories of the Prophets of God—Noah, Hud, Salih, Lot, and Shu‘ayb (peace be upon them)—illustrate their struggles against moral corruption in both financial and social dimensions.

      Accordingly, Islam has adopted a clear and wise methodology in establishing ethics within financial transactions. It gave special attention to the two pillars of economic dealings—labor and capital—endowing them with ethical principles and values. By doing so, Islam safeguarded society from economic collapse, provided that individuals adhere to these ethics and values.

     Law, too, has taken an interest in embedding ethics in financial transactions through the establishment of legal frameworks and regulations designed to ensure stability and transparency, protect the rights of individuals and institutions, and avoid the risks of fraud and economic crises. Such measures include     regulating financial markets, drafting financial contracts, disclosure guarantees, and mechanisms for dispute settlement—all with the aim of achieving justice and stability in the economy.

      In Morocco, the legislator has enacted a set of laws to protect consumers and ensure fair competition. These include Law No. 13-83 concerning the repression of fraud in goods, Law No. 104-12 relating to freedom of prices and competition, and Law No. 20-13 concerning the Competition Council, in addition to provisions on industrial property rights such as Law No. 17-97. These laws penalize monopolistic practices, commercial fraud, and unlawful acts that harm competition, while also protecting consumers through price regulation and ensuring the quality of goods.