The Charity Commission has launched a statutory inquiry into Islamic charity, Peacetrail, and restricted the financial transactions it can make, after it was unable to show what it had done with any money it had raised.

The regulator investigated Peacetrail after finding evidence of poor governance and financial controls, including failure to file any accounts since its launch, an inability to provide evidence for any of the £70,000 it claimed to have spent, and the use of its bank account by another, non-charitable company.

The charity was set up in 2013 with the aim of advancing the Islamic faith and supporting women and children facing financial hardship in the UK, Palestine and Pakistan.

But it was subject to a monitoring visit by the regulator in 2016 after failing to file any accounts.

In a statement today, the regulator said it found evidence of poor governance, risks to the charity’s property due to poor financial management and failure by the trustees to conduct due diligence and monitoring of its partners.

In response to the findings, the Commission has made an order to restrict financial transactions without prior written approval from the regulator.

The regulator confirmed its examination will focus on the charity’s administration, governance and management by trustees, financial controls and whether trustees complied with their duties under charity law.

It will also take steps to safeguard and retrieve any funds which cannot be accounted for.

Peacetrail was contacted by Civil Society News for comment but did not respond by the time of going to press. A search for its website this morning reveals that it is no longer live.