Question:
As-Salamu `alaykum. I would like to know whether or not unlawful money is subject to Zakah. Jazakum Allah khyran.

Answer:
Wa `alaykum As-Salamu wa Rahmatullahi wa Barakatuh.
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

Dear sister in Islam, thanks a lot for your question which reflects your care to have a clear view of the teachings of Islam. Allah commands Muslims to refer to people of knowledge to get themselves well-acquainted with the teachings of Islam as well as all aspects of life.

Regarding your question, it should be made clear that ill-gotten money is not subject to Zakah because such money must be returned in full to its legal owners.

"Zakah must be paid on assets that are lawfully owned. Zakah cannot be calculated on prohibited or unlawful wealth, such as income from interest, stolen property, or wealth acquired or earned through unlawful means. Such kinds of wealth must be returned in full to its lawful owners.

Unlawful wealth cannot be transformed into lawful wealth by paying Zakah on it, nor does one obtain any reward for giving all of it away to the poor. The Prophet (peace and blessings be upon him) said, "He who acquires wealth by forbidden means, then gives it away as a charity gets no reward; the sins remain on him." (Reported by ibn Khuzaymah) .

In another hadith, the Prophet (peace and blessings be upon him) said, "By Him in Whose Hand is my soul, no servant earns wealth unlawfully and gives it away in charity except that it is rejected; or spends it except that it is not blessed; or leaves it behind his back [after he dies] except that it is his means to the Fire. Allah does not erase evil with evil but rather He removes evil with good. A corrupt deed does not clear away another corrupt deed." (Reported by Ahmad) .

Responded by: A Group of Islamic Researchers