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U.S. Financial Institutions Grapple with Banking High-Risk Islamic Charities

By Rachael Lee Coleman

The Islamic American Relief Agency described itself as an organization devoted to raising money for African famine crises. It distributed pamphlets soliciting tax-deductible donations to "empower disadvantaged people everywhere." The Missouri charity then funneled $1.4 million through an affiliate aid organization in Jordan to Iraq, a country then sanctioned by the U.S. government, and used its tax-exempt status to disguise the illegal transactions, according to the U.S. Attorney's Office. Federal prosecutors indicted Islamic American Relief and five of its associates Mar. 6 for laundering money, moving it to a sanctioned country, stealing federal funds, and violating tax laws. U.S. financial...

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