Lloyds TSB forces closure of Interpal's bank account (Muslim Charity)

CharityFinance ^ | 11/19/08

[Sammy67]

Interpal the controversial UK-based Palestinian charity, is facing closure after Lloyds TSB instructed the Islamic Bank of Britain to shut its bank account.

Interpal (pictured), which is on a list of banned organisations in the US because of suspected links with terrorists, is also under investigation by the UK Charity Commission for the third time.

The first two investigations by the Commission, which concluded in 1996 and 2003, found no evidence of any wrongdoing by the charity. The latest one, which opened in December 2006, is examining fresh concerns about the potential for inappropriate links between the charity and terrorist supporters of Hamas, the government of Gaza.

Yet the suspicions of US intelligence services appear to have proved enough of a warning bell for Lloyds, which has told the Islamic Bank of Britain (IBB) to close Interpal's account on 8 December. Lloyds has the power to do this because it is a clearing bank and clears all the IBB's cheques.

In light of the news, Interpal's chair Ibrahim Hewitt issued a statement to supporters warning that the situation "has the potential to force us to cease operations early next month". Early December is also

[ButThreeLeftsDo]

Tough hop there, Ibrahim....