The Charity Commission has opened an inquiry into a Muslim international aid charity, Insaan Relief, over concerns that money sent overseas had not been used for charitable purposes.

The Nottingham-based charity was registered in 2011, and had an income of £454,000 in the last year, all of it voluntary.

The Commission said it first received concerns in 2012, and met with the charity twice in 2013.

“During this period the Commission became increasingly concerned about the trustees’ continuing failure to properly account for the charitable expenditure of the charity and properly manage conflicts of interest,” the Commission said in a statement. “As a result, a statutory inquiry was opened on 3rd February 2014.”

It said that as well as whether funds sent overseas have been used for charitable purposes, it was also reviewing the conduct of the charity’s trustees, including their ability to manage conflicts of interest, their decision making, and the level of control they exercised over the charity.

Humayan Hashmi, a trustee of the charity, said: “Although any inquiry or investigation is a source of concern, we are treating this investigation as an opportunity to review the way we work and to make improvements to our systems and processes where these may be necessary.

“We expect to work closely with the commission and to use this process to put us in a better position to serve more people effectively in future years.”