Key Takeaways
- The UK Charity Commission has launched a statutory inquiry into Al‑Khair Foundation after receiving a complaint alleging links to Hamas and the financing of that group.
- The investigation was triggered by the arrest and extradition of Mohammad Yousef Hasna, an Al‑Khair employee charged in the United States with conspiring to provide material support to Hamas.
- U.S. Department of Justice documents describe Al‑Khair as the “Sham Charity” used to funnel financing and commodities to Hamas, noting that the charity’s gross income nearly doubled—from £31.28 million to £74.79 million—following the October 7, 2023 Hamas attacks.
- In response, the Commission issued a legal order restricting certain financial transactions by Al‑Khair without prior consent and is examining trustees’ due diligence, oversight of international partners, and policies to prevent misuse of funds.
- While the Charity Commission cannot investigate criminal conduct, any evidence of wrongdoing will be referred to police; Counter Terror Policing London has also opened a separate probe, executing search warrants on premises linked to the charity.
- Al‑Khair Foundation says it is fully cooperating, maintains that its aid reaches intended beneficiaries, and emphasizes its commitment to robust governance and compliance.
Background and Mandate of Al‑Khair Foundation
Al‑Khair Foundation was established to advance religion, promote education, support social welfare, foster religious harmony, and provide relief to victims of disasters. Registered with the UK Charity Commission, the organization describes its mission as delivering humanitarian assistance to poor and marginalized communities worldwide, with a particular focus on Gaza and other conflict‑affected regions. Its stated activities include fundraising, procurement of aid goods, and distribution through local partners. The charity’s public filings show it operates in multiple countries, emphasizing transparency and donor trust as core principles.
The Allegations and Complaint Received
Last month the Charity Commission received a complaint alleging that Al‑Khair Foundation and its partners had connections to Hamas and had directly funded the militant group. The complaint raised serious concerns about possible diversion of charitable funds to support terrorism. Upon receipt, the regulator immediately began examining the allegations, gathering additional information to inform an initial assessment. The nature of the complaint prompted the Commission to treat the matter as a high‑risk issue requiring formal scrutiny.
Escalation to Statutory Inquiry by Charity Commission
After reviewing the complaint and preliminary evidence, the Charity Commission escalated its engagement from a routine compliance check to a statutory inquiry—the highest level of regulatory intervention available to the body. A statutory inquiry grants the Commission powers to compel the production of documents, interview trustees and staff, and issue binding directions regarding the charity’s operations. This move signals the regulator’s view that the allegations merit a thorough, formal investigation rather than informal oversight.
Arrest and Extradition of Mohammad Yousef Hasna
The investigation gained urgency following the arrest of Mohammad Yousef Hasna, an individual employed by Al‑Khair Foundation, in the United Kingdom last week. Hasna was extradited to the United States, where he faces charges of conspiring to provide material support to Hamas. U.S. authorities allege that Hasna facilitated the transfer of funds and commodities to the militant group while acting in his capacity as an Al‑Khair employee. His case has become a focal point for both the Charity Commission’s inquiry and parallel law‑enforcement probes.
US Department of Justice Indictment Details
The indictment obtained by The Telegraph identifies Al‑Khair Foundation as the “Sham Charity” referenced throughout the DOJ’s charging documents. According to the filing, Hasna used the charity’s infrastructure to provide financing and procure commodities destined for Hamas. Crucially, the indictment notes that Al‑Khair’s gross income “nearly doubled following the October 7 Hamas Massacres,” rising from £31.28 million in the prior financial year to £74.79 million for the year ending 31 July 2025. This sharp increase coincided with heightened humanitarian needs in Gaza after the attacks, but regulators are scrutinizing whether the surge reflects legitimate aid or illicit financing.
Financial Surge Post‑October 7 Attack
Al‑Khair reported an income of over £74 million for the financial year ending 31 July 2025, marking a substantial rise from the previous year’s £31.28 million. The Charity Commission highlighted this growth as a point of concern, noting that such a rapid influx of funds warrants careful monitoring to ensure they are used solely for charitable purposes. The timing of the increase—coinciding with the aftermath of the October 7 Hamas-led assault on Israel—has intensified scrutiny over whether the charity’s financial flows may have been diverted to support militant activities.
Regulatory Actions: Legal Order Restricting Transactions
Given the potential risk to charitable funds, the Commission issued a legal order that restricts certain financial transactions by Al‑Khair Foundation without the regulator’s prior consent. The order aims to prevent further movement of money that could be misused while the inquiry proceeds. It applies to specific categories of expenditure, such as international transfers and payments to partner organizations, and requires the charity to seek approval before undertaking those actions. This precautionary measure reflects the Commission’s duty to protect donors’ assets and preserve public trust in the charitable sector.
Scope of the Commission’s Investigation
The statutory inquiry will examine several key areas: the nature and extent of Al‑Khair’s links to Mohammad Yousef Hasna; whether trustees conducted appropriate due diligence on international partners; and whether the charity has effective monitoring systems to track the end use of funds abroad. Investigators will also assess the adequacy of the organization’s policies and procedures designed to safeguard charitable assets from misuse or diversion. By scrutinizing governance, financial controls, and partnership vetting, the Commission aims to determine whether any systemic failures contributed to the alleged wrongdoing.
Limits of the Commission’s Authority and Referral to Police
As a charity regulator, the Commission lacks the authority to investigate criminal conduct directly. Should evidence emerge indicating that crimes such as terrorism financing have occurred, the regulator will refer the matter to law‑enforcement agencies, which possess the powers to investigate and prosecute. This division of labor ensures that regulatory oversight focuses on compliance with charity law, while criminal investigations remain the remit of the police and counter‑terrorism units. The Commission has stated it will consider all relevant information and cooperate fully with any criminal inquiries that arise.
Parallel Counter Terror Policing London Investigation
Separately, Counter Terror Policing London (CTP) confirmed that it is conducting its own investigation into Al‑Khair Foundation. CTP has executed two search warrants on addresses in Croydon, South London, seeking evidence that may substantiate the allegations of Hamas connections. The involvement of a specialist counter‑terrorism unit underscores the seriousness with which UK authorities view the potential links between a registered charity and a designated terrorist organization. Cooperation between the Charity Commission and CTP is expected, with information shared where permissible under legal gateways.
Al‑Khair Foundation’s Response and Commitment
In a public statement, Al‑Khair Foundation said it is cooperating fully with the statutory inquiry and is taking the matter seriously. The charity reiterated its commitment to ensuring that donor funds are used exclusively for meeting the humanitarian needs of poor and marginalized people. It emphasized that it maintains robust governance, compliance, and oversight processes intended to guarantee that aid reaches its intended beneficiaries. While affirming its dedication to transparency, the organization has not yet addressed the specific allegations regarding Hasna or the alleged surge in income linked to Hamas activities.
Conclusion and Implications
The ongoing statutory inquiry into Al‑Khair Foundation represents a significant test of the UK charity regulatory framework’s ability to respond to serious allegations of terrorism financing. The convergence of regulatory scrutiny, criminal charges in the United States, and a parallel counter‑terrorism investigation highlights the multi‑jurisdictional challenges posed by charities operating in conflict zones. Depending on the inquiry’s findings, outcomes could range from strengthened governance requirements and remedial actions to sanctions, removal of trustees, or even deregistration if criminal wrongdoing is proven. For donors and the broader charitable sector, the case underscores the importance of vigilant due diligence, transparent financial reporting, and vigilant oversight to preserve public confidence in charitable institutions.