A court in the Philippines has frozen the local bankaccount of a Saudi-based charitable organization because of suspicions it has been used to bankroll terror activities, thecourt said Tuesday. The Court of Appeals said in a written ruling it found "probable cause" that an account of the International Islamic Relief Organization's local office may have been used for illegal purposes. The court granted a request by the Anti-Money Laundering Council to freeze the account for at least 20 days.The order, which could be extended, prevents any withdrawals from the account. It also paves the way for an investigation of the account, the court said. The court referred to allegations by the U.S. Department of Treasury that the charity's Philippine and Indonesian branches are involved in fundraising for al-Qaida and allied groups. The department also accuses Abd Al Hamid Sulaiman Al-Mujil, executive director of the charity's Eastern Province branch in Saudi Arabia, of backing Islamic militants, according to the court.
The ruling also said the Anti-Money Laundering Council accuses the charity's local branch of providing funds to Abu Sayyaf, a small terror group linked to al-Qaida and blamed for ransom kidnappings, beheadings and bomb attacks in the Philippines. A former Abu Sayyaf member has alleged that the charity's funds have helped to finance legitimate projects as well as terrorist operations, the court said.
A U.N. sanctions committee includes the charity's Philippine branch in a list of people and groups linked with Osama bin Laden, the Taliban and al-Qaida - targets of U.N. Security Council-endorsed sanctions that include asset freezes, travelbans and arms embargoes, the court said. The U.S. asked the Philippine government in August to freeze funds, assets and property of the charity and Al-Mujil. A government investigation found the charity had two accounts with a local bank, including an active account, which was subject to the freeze order, the court said.