(AFP) Washington does not consider this country as a country that harbours terrorists, the US Embassy told the official Bernama news agency today.

The embassy's press office also said in a statement that the US had not made any specific requests to the government to extradite terrorists, Bernama reported.

The embassy said media reports that this country had been asked by the US to turn over citizens involved in terrorist activities or that Malaysia was being branded as a country that harboured terrorists "are false".

On the contrary, the embassy greatly appreciated the government's response to the September 11 attacks in the US and valued Malaysia's continuing cooperation and support, the statement said, according to Bernama .

It was reported at the weekend that the US Federal Bureau of Investigation (FBI) had asked nine nations to hand over hundreds of suspected terrorists in the wake of the terror attacks.

The report, in a pro-Syrian Arabic newspaper, named the countries as Afghanistan, Egypt, Iran, Lebanon, Malaysia, Saudi Arabia, Syria, the United Arab Emirates and Yemen.

The Almoharrer weekly, which is Syrian-owned but edited in Paris and Beirut, cited European diplomats in France for its report, which added that the countries had been asked to turn over the suspects or "face the consequences".

The government immediately issued a strong denial that it harboured terrorists. Prime Minister Dr Mahathir Mohamad said that if any terrorists who had committed crimes in the US were found they would be extradited.

No money here

Mahathir has pledged cooperation in the fight against terrorism, and said there was no evidence that terrorists had stashed money in local financial institutions.

"Up to this point of time, of the names given to us, we have not been able to trace those of the alleged terrorists with money in our banking system," he was quoted as saying by Bernama .

Mahathir was commenting on reports that Osama bin Laden, the United States' key suspect behind the terror attacks on New York and Washington, maintained bank accounts here under a false name.

US President George W. Bush, announcing "a major thrust" in his war on terrorism, on Monday ordered the freezing of bin Laden's US assets and put overseas banks on notice that they must follow suit.

The president's executive order warned institutions abroad that their US assets may be frozen if they do not block monies held by 27 individuals and organizations - including Osama and his al-Qaeda network.

Mahathir told a news conference closed to the foreign media that the government would probe any information that could substantiate the allegation that terrorists kept money here.

"Perhaps they could have already closed their accounts but the information we have gathered so far shows there is no terrorist money kept in Malaysia," he said.