U.K. Regulator Freezes Charity Funds in Terror Probe

Nick Allen Aug. 24 (Bloomberg):

The U.K. Charity Commission froze the funds of Crescent Relief following allegations of links between the charity and ``terrorist abuse'' of donations.

A formal investigation is under way into the ``very serious'' allegations, the commission said in an e-mailed statement.

The inquiry follows suggestions that money from some Muslim charities has been diverted to terrorist and extremist groups. ``It's unfortunately quite a widespread practice of terrorists to use charities to supply funds for their own use,'' said Professor Paul Wilkinson, chairman of the U.K.'s Centre for the Study of Terrorism and Political Violence, in a telephone interview.

Crescent Relief's funds are being frozen as a ``temporary and protective measure,'' while the situation is investigated, the commission said. The U.K.-based charity carried out humanitarian efforts in Kashmir following the earthquake there last October, according to its Web site. The disaster left 73,000 dead and 3 million homeless, according to the U.K.'s Disasters Emergency Committee.

The charity was set up by the father of a suspect arrested in Pakistan over an alleged plot to use liquid explosives to blow up trans-Atlantic airliners, the Times newspaper reported Aug. 19. No one answered telephone calls at the charity's U.K. headquarters today.

Posted on 26 August 2006 @ 20:23