Interpal Nearing Forced Closure Due to Allegations

Interpal, a UK based nonprofit, is facing being shut down after its bank was told to close its account by a major London clearing bank. Originally set for December 8, the deadline for closing the account has been extended to January 30, 2009.

Interpal's bank, the Islamic Bank of Britain was notified by Lloyds TSB that all transactions of the charity were to cease due to ongoing allegations in the UK and the United State's inclusion of the charity on a terrorist related organization list from 2003.

Despite two investigations finding no evidence of wrongdoing in 1996 and 2003 by the UK Charity Commissions, which monitors and regulates UK based charities, Interpal remains a target of suspected terror-related financing.

Even as the latest investigation unfolds, Interpal continues to raise money for Palestinians in need throughout the Middle East. They held an event in London on December 1 honoring Karen AbuZayd, the Commissioner General of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA). Members of the English Parliament were in attendance to hear AbuZayd say that she was "happy to be working with Interpal" and praise their critical donations to UNRWA.

The impending closing is set to take place around the same period of the Muslim festival of Eid, a traditional time for charitable giving by the Islamic community.

The press release of the event featuring the Commissioner General of UNRWA is available here. [1]