The Charity Commission’s investigation into Muslim Aid’s alleged links with Hamas has concluded that the allegations are not substantiated.

However, the Commission said it has provided regulatory advice and guidance to Muslim Aid’s trustees to “further strengthen the way in which the charity’s due diligence and monitoring procedures are applied and recorded”.

The Commission began investigating the charity after The Daily Telegraph suggested it had funnelled money to organisations allegedly linked with Hamas.

But the Commission found that while funds were “set aside” in 2005 for payment to one designated organisation - 'designated' means it is a crime to provide it with funds without a licence from HM Treasury – this payment was never made because that organisation became subject to financial sanctions.

In a statement, the Commission said: “On the evidence examined, the Commission concluded that the charity had not illegally funded the Al-Ihsan Charitable Society.  Within the scope of this investigation the Commission found no evidence of irregular or improper use of the charity’s funds or any evidence that the charity had illegally funded and proscribed or designated entities.

“By publishing this report the Commission has given a public assurance that public allegations of links between the charity and terrorism in relation to the Al-Ihsan Charitable Society are unsubstantiated.”