Muslim charity organisations are coming across increasing scrutiny into their work, following reports last month that funds from one source may have gone to terrorists involved in last year's attacks on the US.

The Federal Bureau of Investigation is probing whether charitable contributions from Princess Haifa al Faisal, wife of the Saudi ambassador to Washington, ended up in the hands of two Saudi nationals allegedly involved in the Sept 11 attacks.

The work of charities has continued even after the attacks, and the organisations have denied any role in funding terrorism. But they have also increasingly been forced to operate within strict constraints to ensure that no funds reach the wrong hands.

A significant proportion of funding for the Islamic charities comes from contributions by private businessmen. The charities collect zakat (compulsory alms) to finance projects for the benefit of the refugees, displaced and needy all over the world.

These charity organisations have a network that specifically targets suffering Muslims. Palestine is a special target because it has come to symbolise atrocities against Muslims. Providing food, clothing and educational support to Palestinian people and children is widespread.

Accusations of blackmail

Over the past year, the six Gulf Co-operation Council member countries have pledged to co-operate with the US and the United Nations in freezing the accounts of suspected individuals and groups. But they have also expressed their inability to keep tabs on all their activities.

Commenting on the US campaign and the "damage" it has done toIslamic charities all over the world, Abdullah Mubarak Al Dokhan, directorof Sharjah Charity International in the United Arab Emirates (UAE), accused irresponsible US forums of "blackmailing Muslim financial institutions and charities after Sept 11".

The US-based independent Council for Foreign Relations said in a recent report that a US task force had found that "for years, individuals and charities based in Saudi Arabia have been the most important source of funds for al-Qaeda".

But Saudi charities, which have been the main target of this attention, have argued that having been involved in humanitarian work in Afghanistan for more than two decades automatically put them at the forefront of suspicion in the hunt to track down funding for al-Qaeda.

Saudi Arabia boasts of more than 230 non-profit organisations, which raise more than 1 billion Saudi riyals (US$267 million) a year.

Checks on money-laundering

Following the controversy involving the Saudi ambassador's wife, the Saudi embassy's information office released an 'action-taken' report on Dec. 3. It stated that the government has taken a number of substantial legal and regulatory measures over the past year to control charitable funds and prevent money laundering that may benefit terrorist groups.

All charities are now subject to extensive audits, to ensure that the funds provided by donors are used for their intended purposes.

In addition, charities whose activities extend beyond Saudi Arabia's borders must report and co-ordinate their activities with the Foreign Ministry.

At the same time, the Saudi government has dismissed talk of any US ultimatum over funding of terrorism by the kingdom's businessmen, saying that Washington has not passed on evidence of wrongdoing by Saudi nationals.

Riyadh has investigated bank accounts suspected of being linked to terrorism and frozen 33 accounts belonging to three individuals and one institution totalling US$5.5 million.

While Washington and Riyadh jointly determined that the Saudi headquarters of the Al Haramain Islamic Foundation was dedicated to helping the needy, the two governments discovered that the Somalia and Bosnia branches of the private charitable entity were infiltrated by "evil-doers". The two foreign branches were shut down.

Kuwait's actions

In Kuwait, liberal members of parliament have kept the pressure on the government to ensure the shutdown of unlicensed charities. They charged that at least 100 such charities were operating illegally and collecting funds that allegedly supported terrorist organisations abroad.

"In our country, some people politicise Islam and there are some who abuse the Muslims' money," Ahmad al Rabei, a staunch liberal, told parliament in November.

Leading Islamic charities refuted the charges and said they were co-operating with the Kuwaiti government on additional controls. Islamist MPs told parliament that there was no evidence that Kuwaiti charities supported terrorism and indirectly accused the liberals of trying to "defame Islamic work".

The Kuwaiti government has established a Supreme Council for Charity Work to "organise" Islamic charities as part of the global moves to dry up the financial resources of terrorist groups.

It has shut down unlicensed booths collecting donations. In particular, the Interior Ministry has banned unlicensed charities from operating in mosques, co-operative societies and supermarkets.

But Ashraf Nada, media co-ordinator of Human Appeal International in the UAE, which specialises in orphan sponsorship, said that the Emirates and US governments' clampdown on charities had not hindered his group's activities.

"Our activities are humanitarian and they are open to all. Anyone can come and see all aspects of our activities, which continue now in full swing as it has in the past," said Nada.

But most Islamic charities, especially those in the West, have been affected adversely. Police raids, media attacks and regulatory investigations resulting in a draining away of public support and the loss of donations has made the past year probably the worst ever for the Islamic charity sector in Britain.

According to the British, web-based Muslim News, hundreds of Islamic community centres, mosques and organisations have been targeted by MI5.

But the UAE's Dokhan said that the "baseless" campaign against charities would not hinder any Muslim from paying his zakat because it is the third pillar of Islam, and that charities would thrive albeit the restrictions. IPS