Getting Rid of Money from Forbidden Sources
24-3-2002 | IslamWeb
Question:
I got a large amount of money by working in a prohibited business (i.e. selling alcohol, etc, interest from saving accounts). I want to get rid of all this money and repent sincerely to Allah, but I'm not sure how to get rid of all this money. Can I give this money to a Muslim brother to buy a bike for him to go to work as he has to walk to his office because he cannot afford to buy a bike from his salary as he got more necessary things to do, still he needs a bike or can I give this money to his sister who is having serious illness (like thalassemia -her body needs blood every month or etc). Or can I give it to my relatives who are poor like grandfather, nephew, niece, cousins or else. Please advise me how to get rid of this?
Answer:
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad 
is His slave and Messenger.
There is no doubt that Riba (usury and/or interest) and selling wine are two major sins. One has to repent sincerely from dealing with them both. Money earned from these two actions is forbidden, and one has to get rid of it, since it is forbidden to own it. But, one can spend such money on the general welfare of the Muslims or give it to the poor and needy. Moreover, there is no objection to give such money; i.e. received from forbidden activity, to needy relatives provided that those relatives are not among those whom you are responsible to spend on. As a rule, one is responsible to spend on one's own parents and their fathers and ancestors as well as one's descendants and their children and grandchildren. This is the predominant opinion among the Muslim scholars.
As for your situation, you have to give priority to those who are in a dire need and so on.
Thus, we think that the sister of your Muslim brother, who undergoes a blood disease, is in a dire need. So, we advise you to satisfy her need.
Allah knows best.