A situation where a person takes possession (hiyazah) of an object or a form of wealth (mal) as a proxy/ trustee/ fiduciary (ameen), rather than as an owner (malik). Dealings in which taking possession is based on yadd amanah include partnership, borrowing of physical objects, acceptance of deposits, entrepreneurship (al-mudarib’s work) in mudarabah, ijarah (a lessee’s part), waqf trust, etc.

For example, the mudarib takes possession of mudaraba capital on the basis of trust (amanah), and as such is under no obligation to guarantee the funds except in the case of negligence (taqseer) or transgression (ta’addi). In general, in transactions where a party or more can dispose of money or assets within the limits of yadd amanah, no liability can be entertained in case of damage or destruction or loss (to underlying funds or assets in his/their custody) unless this was intentional or caused by negligence.

Yadd amanah is an Arabic term (يد أمانة) that translates as a fiduciary capacity or an entrustment hand (or simply, entrustment).