Is sending money abroad halal?
Sending money to family overseas, whether to Pakistan, Bangladesh, Somalia, Egypt, or anywhere else, is not just permissible in Islam, it is actively encouraged. Supporting family is an obligation. The question is not whether to send money, but which method is permissible.
The key consideration is whether the transfer service itself involves riba. For most money transfer services, the answer is: no. They make money on the exchange rate margin and transfer fees, not on interest. This makes most mainstream transfer services permissible for use by British Muslims, provided you understand how they work.
The Islamic ruling on currency exchange
Currency exchange (Sarf) is permissible in Islam under specific conditions. The classical condition is that the exchange must be hand to hand (immediate) and at the prevailing rate. Modern digital transfers, which are typically settled within minutes or hours, are widely considered to satisfy this condition by contemporary Islamic scholars.
What is not permissible is speculative currency trading, buying a currency today hoping to sell it at a higher rate later (forex trading). This is distinct from simply converting and sending money to a family member, which is straightforward and permissible.
Best money transfer services for British Muslims
rate
Wise is the most popular money transfer service in the UK and one of the most transparent. It charges a small fixed fee plus a percentage of the transfer amount, and converts at the mid-market exchange rate — the fairest rate available. Wise does not pay or charge interest on transfers; it is a fee-based service. The vast majority of Islamic scholars and Muslim finance commentators consider Wise permissible for remittances. Also offers a free UK account with debit card, sort code, and account number.
margin
Remitly specialises in remittances to emerging markets — Pakistan, Bangladesh, India, Somalia, Egypt, and many other countries where British Muslims commonly send money. Offers competitive rates for high-frequency senders and allows cash pickup as well as bank deposits. Like Wise, Remitly earns through exchange rate margins and fees rather than interest. Widely considered permissible for Muslim senders.
margin
Western Union is the oldest and most widely recognised money transfer service globally, with the broadest network for cash pickup — important in countries where recipients may not have bank accounts. Available in person at many UK post offices and convenience stores. Charges higher fees and less competitive rates than Wise or Remitly, but its reach is unmatched for certain African and Middle Eastern countries.
Sending money abroad via your high street bank is usually the most expensive option. Banks typically charge a flat transfer fee, add a significant margin to the exchange rate, and may charge the recipient bank a fee on arrival. There is no riba in the transfer itself, but the cost is simply poor value compared to the alternatives above. For regular remittances, the difference over a year can be hundreds of pounds.
What about Hawala?
Hawala is a traditional Islamic money transfer system that predates modern banking by centuries. Money is transferred through a network of trusted brokers (hawaladars) rather than physically moving funds. It is permissible in Islam and still widely used in South Asian and East African communities.
However, in the UK, Hawala operators must be registered with HMRC as a Money Service Business. Using an unregistered Hawala service carries legal and safety risks, your money is not protected if something goes wrong, and participating in unregistered services may be illegal. If you use Hawala, ensure the operator is HMRC-registered.
Side-by-side comparison
| Provider | Fee model | Speed | Cash pickup | Interest | Send |
|---|---|---|---|---|---|
| Wise | Fee + mid-market rate | Minutes to 1 day | No | None ✓ | Send → |
| Remitly | Fee + rate margin | Minutes to hours | Yes ✓ | None ✓ | Send → |
| Western Union | Fee + rate margin | Minutes | Yes ✓ | None ✓ | Send → |
| High street bank | High fee + large margin | 1-3 days | No | None ✓ | , |
Rates change frequently. Always compare at point of transfer. Wise generally offers the best exchange rate; Remitly and Western Union offer wider cash pickup networks for recipients without bank accounts.
Practical tips for sending money
Compare rates before each transfer. Exchange rates fluctuate daily. The best service last month may not be the best today. Use a comparison tool like monito.com to compare rates in real time.
Send larger amounts less frequently. Most services charge a fixed fee per transfer regardless of amount. Sending £500 once is cheaper than sending £100 five times.
Avoid sending via your bank. High street bank transfer rates are almost always significantly worse than dedicated transfer services.
Check recipient options. If your family member does not have a bank account, ensure the service you choose offers cash pickup in their area before you send.
Not financial advice. MyHalalMoney is an information and comparison service only. Nothing on this page constitutes personal financial advice. Always seek independent advice before making financial decisions.
✓ Verified June 2026
Frequently asked questions
Using conventional money transfer services like Wise or Western Union is generally considered permissible for transferring money. You are using a currency exchange and payment service — not paying or receiving interest on the transaction itself. Standard transfer fees and exchange rate margins are not considered riba.
Hawala is a traditional Islamic value transfer system operating on trust — you give money to a broker in the UK, they contact their counterpart abroad, and the recipient collects the funds. In the UK, Hawala operators must be registered with HMRC as a Money Service Business (MSB). Always verify registration before using one; using an unregistered Hawala broker is illegal.
Yes — supporting family members financially (nafaqah) is not only permissible but encouraged in Islam. Remittances to family abroad are entirely halal. Use a legitimate, HMRC-registered transfer service to ensure funds arrive safely and legally.
Wise typically offers rates close to the mid-market rate with transparent fees. Bank transfers may have less competitive rates but offer the security of a regulated institution. For large transfers, compare rates carefully — even a 0.5% difference is significant on a large sum.