Qatar Islamic Bank: Charity Concerns "Baseless"

A story about the controversy of Islamic financing in Korea quotes the head of Qatar Islamic Bank in Malaysia regarding concerns of terror financing:

"There's not enough evidence to prove that" charities are being used to fund terrorism, Mohamed Azahari said in an interview from Kuala Lumpur. "The accusation is baseless."

Perhaps this is true, but even the appearance of a weakening charity oversight regime in the bank's home country will not add credibility to his argument.

Qatar Charities: A Question of Oversight

This recent article assures readers that funds given to Qatar charities do not wend their way into the pockets of extremists or terrorist-minded folk, citing receipts, "strict regulations" and the fact that "most charities are regulated by the government."

Hopefully this is all true. Qatar and its citizens have underwritten a tremendous amount of charitable work for people in need throughout the world - including here in the United States - and one wants to think only the best about such a considerable humanitarian effort.

But there are of course allegations and general atmospherics in today's world regarding charitable work in troubled areas (such as Gaza, Pakistan, Sudan, Yemen, and Indonesia) that cannot reasonably be ignored. And, unfortunately, some allege that a Qatar charity was a trusted cash mover by Osama bin Laden and, as a result, may have been involved in unpleasantness in Chechnya, as well as the 1998 bombing of US embassies in Africa and a failed assassination attempt on Egyptian President Hosni Mubarak.

Knowing already that the US is frustrated with Qatar's cooperation on counterterrorism issues, I was prompted to check out the US government's specific views regarding Qatar's anti-terror finance efforts which, for reasons known only to some horrible clutch of federal bureaucrats, can be found nestled deep in something called the International Narcotic Control Strategy Report (INCSR).

While the 2010 report is full of interesting information about what Qatar does (and doesn't do) to fight financial crimes, it includes no mention of charity oversight. But checking the 2009 INCSR report proved more fruitful:

Law No. 13 from 2004 established The Qatar Authority for Charitable Activities (QACA), which monitors all charitable activity in and outside of Qatar. Only officially registered organizations can collect and disperse money for charitable purposes. There are five officially registered charities in Qatar: Qatar Charity, the Sheikh Eid Bin Mohammad Al Thani Charitable Association, the Qatari Red Crescent, the Jassim Bin Jaber Bin Mohammad Al Thani Charitable Association, and Reach Out to Asia (ROTA). Two additional charities are in the process of being registered. The Secretary General of the Authority approves all international fund transfers by the charities. The Authority reports to the cabinet via the Ministry of Labor and Social Affairs and has primary responsibility for monitoring overseas charitable, development, and humanitarian projects that were previously under the oversight of several government agencies. The IMF assessment found that domestic measures to prevent abuse of nonprofits go beyond FATF recommendations, and the QACA appears to ensure effective implementation of the requirements in place.

Sounds promising, though a report by the Congressional Research Service provides an important additional fact:

"....However, Article 24 of the law establishing the Authority allows the Emir to grant an exemption from QACA oversight to any organization at any time."

This would seem to set the stage for circumstances that jibe with the quote in the story about how "most" of Qatar's charities are regulated by the government, the exceptions of course being those that The Big Fella does not want regulated.

But here's the problem: the Qatar Authority on Charitable Activities was dissolved earlier this year.

This was reported in a May article in The Peninsula about a meeting of charitable organizations from within the Organization of the Islamic Conference, where the authority's dissolution "raised several eyebrows" and was "met with astonishment." Some excerpts:

The additional absence of Qatar Authority for Charitable Activities, which was recently dissolved after gaining prominence in the Arab and Muslim world, also raised several eyebrows. It was particularly surprising to participants from the GCC, namely the delegations of Saudi Arabia, Kuwait and the UAE....

While some Gulf states are currently awaiting decisions approving the establishment of independent supervisory and regulatory work of assemblies and civil society institutions in their home countries in the forthcoming days, current news regarding Qatar’s dissolution of the Qatari Authority and distribution of its duties was met with astonishment. It is somewhat similar to a setback since Qatar is regarded as a leader in the region.....

Through the amendment of the Act a few days ago, the amount of capital required for the establishment of associations and private institutions was increased to a minimum of 10 million riyals, as well as the dissolution of the body responsible for planning, developing , and activating the role of civil society institutions, transferring its responsibilities to a mere department, rather than transforming it into a comprehensive, independent sector, otherwise known in today’s world as the Third Sector.

The report leaves the reader wondering exactly which governmental entity is now charged with overseeing Qatar's charitable organizations. Given the vast amount of charitable work that Qatar supports - sometimes even with the help of chili cook-offs held by their new friends from the West - such ambiguity seems counter to everyone's best interests, most importantly those in distressed areas who will benefit from a continuation of Qatar's robust charitable impulse.

Since I've been unable to find any other information that can fill in the blanks, I've begun simply asking people who might know, beginning with the Qatar embassy and the State Department (which still advises citizens to contact the defunct charity authority with questions). I'll update with any new information gathered, and of course welcome the views of anyone who may have insights on this matter at focusonqatar@gmail.com.

QLinks

Ahmadinejad sits down with editors from The Peninsula and Al-Sharq.

Qatar is more than just oil and gas.

It's home of the purple Lamborghini.

Qatar Charity's air bridge to assist those suffering in Pakistan.

More Qatari's matriculating at Texas A&M's Doha campus.

Athletes find something alluring about Doha.

Qatar Investment Authority raises its stake in China Ag bank.

Chili cook off supports Qatar Red Crescent.

Portugal takes its first shipment of Qatari LNG.

QLinks

Sheikh Hamad bin Jassim, Ahmadinejad meets with Ahmadinejad and says "It is clear for Qatar that the development of Iran's nuclear technology is no threat to the regional countries."

The Big Fella praised as "Emir of Resistance" in Lebanon.

Espionage case underscores Cairo-Doha tensions.

India's Petronet to buy some Qatari LNG next month.

Qatar seeks to improve its corporate responsibility standards.

Power problems over at the aluminum factory.

A report on Qatar Red Crescent's efforts in Pakistan.

American expat uses Qatar's blazing sun to bake cookies.

The Heir Apparent issues a decree "banning labourers from staying in groups in residential areas of families."

And a former American expat notes the tolerance he encountered in Qatar and his concerns about the damage that may be done by the Cordoba House political tempest.

Qatar Airways rep notes that if you walk the Qatari streets, "you’re safer than in Washington."

QLinks

The Big Fella meets with Abbas.

...and is headed for visits to Uruguay and Paraguay

The Atlantic profiles the host of Al Jazeera's most popular talk show.

Qatar-backed Barclays fined by US for trying to conceal Iranian transactions.

Qatari work day limited to six hours during Ramadan.

India looks to cut Qatar in to its gas-run projects.

The Big Fella's son Khalid looms large in the US drag racing circuit.

Qatar gobbling up Australian farmland.

Doha's Islamic Museum of Art clocks 400,000+ visitors.

Qatar growth may be slowing down, but it's still tops in the Gulf.

Qatar's health council finds the need to monitor private diet clinics "urgent."

$6 B being spent on Qatari road projects in anticipation of population growth.

Qatari affluence exacts a heavy price on young grooms-to-be.

The Interior Ministry isn't joking around about cracking down on beggars who "lie in wait" around mosques.

QLinks

Ahmadinejad and the Big Fella chat about expanding Iran-Qatar ties.

A nice overview of Qatar's extraordinary boom notes that 1800 buildings are currently under construction in Doha.

Orphans enjoy iftar at the Ritz Ramadan tent courtesy of the Qatar Foundation.

Price of Qatar crude drops.

Is the Doha peace deal for Lebanon about to break?

Congress Offers Qatar A Belated Thank You

Just before Congress adjourned for the August recess, Rep. Brian Baird (D-WA) introduced this legislation (pasted below) thanking Qatar for providing $100 M in assistance to those affected by Hurricane Katrina. The picture above is taken from the Qatar Katrina Fund website which elaborates on how the Qatari gift has been used.

111th CONGRESS

2d Session

H. CON. RES. 313

Expressing thanks to the people of Qatar for their assistance to the victims of Hurricane Katrina.

IN THE HOUSE OF REPRESENTATIVES

July 30, 2010

Mr. BAIRD (for himself, Mr. ALEXANDER, Mr. BOUSTANY, Mr. CAO, Mr. DAVIS of Tennessee, and Mr. SCALISE) submitted the following concurrent resolution; which was referred to the Committee on Foreign Affairs

---

CONCURRENT RESOLUTION

Expressing thanks to the people of Qatar for their assistance to the victims of Hurricane Katrina.

Whereas the people of the Gulf Coast region of the United States were devastated by Hurricane Katrina; and

Whereas the people of Qatar provided $100,000,000 in direct assistance to victims of Hurricane Katrina for projects not funded by other sources, focusing on housing, health care, and education: Now, therefore, be it

Resolved by the House of Representatives (the Senate concurring), That Congress expresses thanks to the people of Qatar for their generosity to the people of the Gulf Coast region of the United States.

QLinks

Ramadan begins.

The Atlantic eyes likelihood of an Israeli attack on Iran within a year.

Qatar Red Crescent sending $13.5 M to Gaza.

Qatar's central bank sends a message to the market by cutting overnight deposit rates

Qatar deal to build hotels in Monaco announced.

Responding to an alarmingly high diabetes rate, Qatar offers a hotline to help diabetics during Ramadan.

HSBC Qatar expects "a steady flow of financing deals in coming years."

QLinks

$300,000 horse headed to Qatar.

"Believe it or not, Qatar is a very serious contender" for the 2022 World Cup.

Qatar Charity assistance in flood-ravaged parts of Pakistan detailed.

The US-Qatar Business Council has a YouTube page.

Qatar growing less comfortable with this idea of men and women working out together.

Bahraini fisherman face Qatari justice.

The Big Fella's son Khalid is a drag racing hero in the US who knows "how to cope with pressure."

China can put down about 26 tanker's worth of LNG over a six month period. Coincidentally, that's exactly how many LNG tankers are idling in UAE waters.

BMW's priced to move in Qatar during Ramadan.

ExxonMobil may or may not still be working with Qatar Petroleum on a $6B petrochemical project.

An independent consumer protection agency in Qatar?

QLinks

Turns out that Japanese tanker was attacked in the Strait of Hormuz by "an Omani suicide bomber in an explosives-laden motorboat" after making stops in Qatar and the UAE's Das Island.

Qatar oil and gas revenues up a "staggering 63 percent"

Doha "Fast-a-thon" will donate QR200 to Pakistani flood victims for every non-Muslim who fasts on the first day of Ramadan.

A Qatar charity is hosting iftar programs in 33 countries "to maintain a link with Muslims around the world."

Those Candy Brothers make the Big Fella "go mental."

It's Doha Bank's third year in China.

Qatar helping people get used to the idea of air-conditioned soccer fields.

Qatari government planning "surprise raids" to ensure Ramadan meats are fresh.

Qatar Diar has a "stronger negotiating position" in still-unsettled Cyprus deal.

QLinks

Huffington Post looks at Qatar's World Cup bid.

Archeologists putting a spotlight on Qatar.

As are American universities.

Qatar pioneers HIV research in Middle East/North Africa.

Qatar opens petrochemical facility in Lebanon.

Dispute over land value jeopardizes Cyprus-Qatar partnership project.

Jet fuel made with natural gas nets Qatar Airways an environmental accolade.

Presumably no natural gas in the airline's award-winning wines though.

Qatar Charity setting up vocational school in Yemen.

RasGas donates to program aimed at preserving Qatari traditions and heritage.

QLinks

The Big Fella in Algiers.

Qatar Airways connecting to the Windy City.

Qatar Red Crescent sends aid to Pakistan.

Qatar doesn't plan on banning Blackberry, but will consider it if telecom providers or national security departments suggest it.

Hamad bin Jassim bin Jabor does not like the idea of the US bombing one of Qatar's neighbors.

Arabic children's books selling like hotcakes at Harrods.

JEM not interested in the Darfur peace talks starting on Monday in Doha.