Muslim Aid 'cleared' of terror link

The report, published on Friday, found that Muslim Aid had given Al-Ihsan Charitable Society £2,500 in 2002 and £3,000 in 2003.

After looking into the charity's 2005 accounts, the commission found that £13,998 had been set aside for the Al-Ihsan Charitable Society that year, but not paid. The report said: "This was as a result of the financial sanctions imposed on the Al-Ihsan Charitable Society after the decision to provide funding had been made.

"The commission found no evidence of irregular or improper use of the charity's funds or any evidence that the charity had illegally funded any proscribed or designated entities."

The commission did not have enough evidence to carry out further investigations into payments to other organisations.