In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Unlawful income is always given to charitable and welfare avenues as a means of purification. Once the unlawful income is transferred to the beneficiary, the impurity is removed with the change of owners. The unlawful element does not apply thereafter to the beneficiary. In a similar manner, unlawful income can be designated as Waqf as long as the Waqif is not the direct beneficiary of this particular Waqf. [AAOIFI Sharia Standards]
And Allah Alone Knows Best
Mufti Faraz Adam,
I Waqf Shariah Advisor