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Interpal bank closure delayed until new year

Finance | 25 Nov 2008

Lloyds TSB has reportedly agreed to postpone the closure of Interpal's bank account from 8 December until 30 January 2009 after representations from the charity's bank, the Islamic Bank of Britain (IBB).

The delay gives the UK-based Palestinian charity (pictured) a few extra weeks breathing space but still gives it just two months, with Christmas and new year in the middle, to find a new bank.

Interpal was told on 11 November that Lloyds TSB, as one of the four big clearing banks, planned to stop clearing the IBB's cheques unless it closed down Interpal's account. While Lloyds has refused to comment on the situation, it is understood to have been influenced by the US sanctions on Interpal and pressure from other groups concerned that Interpal has links with terrorists associated with Hamas.

The IBB is powerless to obstruct Lloyds, even though Interpal believes it does not want to close its account.

Supporter action against Lloyds TSB

Interpal claims that support has been growing for its case, with various groups taking the initiative and encouraging supporter action. A spokeswoman for Interpal said the Scottish Palestinian Solidarity Campaign staged a demonstration outside Lloyds TSB in Edinburgh's Hanover Street on Saturday, and Islamic student group FOSIS had launched a petition that had so far attracted 700 signatures.

Mpac, the Muslim Public Affairs Committee, has also covered the story on its website, urging Muslims to write or telephone Lloyds TSB's chief executive to complain about Interpal's treatment.

The spokeswoman added that while the IBB had informed Interpal that the closure had been delayed until the end of January, the charity had had no official notification from Lloyds. The bank has refused to meet with the charity despite requests to discuss the case.

As a result, Interpal is still trying to make alternative arrangements just in case it cannot access its IBB account on 8 December.

Lloyds TSB refuses to comment, citing client confidentiality.

US charity convicted of terror links

Meanwhile, a federal jury in Dallas, Texas on Monday found an Islamic charity and five men linked to it guilty on all charges in a long-running case linked to the channelling of over $12m (£8m) to Hamas. The verdict was delivered on the eighth day of deliberations of the retrial.

The Holy Land Foundation was one of the biggest Islamic charities in the US before its closure late in 2001 and said then that it focused on disaster relief and aid to Palestinian refugees.

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