When is a charity not a charity?

AP: Britain investigates terror links to Pakistan charity
LONDON - British authorities investigating a plot to bomb trans-Atlantic jetliners focused Monday on any links between the suspects in custody and associates in Pakistan, with suspicions raised that an Islamic charity funneled money raised for earthquake relief to help finance the alleged plot...

The New York Times reported that money raised for victims of the earthquake was channeled to the plotters through the Pakistani-based charity Jamaat al-Dawat — a charge the charity denied.

The charity is not registered in Britain, but laws do not prevent British citizens from donating to or collecting for it.

And what exactly is Jamaat al-Dawat?

Roto-Reuters: Charity chief's arrest unrelated to U.K. plot: Pakistan

ISLAMABAD - The decision to put the chief of an Islamic charity, designated a terrorist organization by the United States, under house arrest last week had nothing to do with an investigation into a conspiracy to blow up transatlantic airliners in mid-air, Pakistan said on Tuesday.

Hafiz Muhammad Saeed, head of Jamaat-ud-Dawa, was placed under house arrest at his home in the eastern city of Lahore on Wednesday night...

Saeed, the founder and former head of Lashkar-e-Taiba, one of the most-feared jihadi groups fighting Indian rule in Kashmir, has been placed under house arrest for just a month, according to an aide in Jamaat-ud-Dawa.

The United States put Jamaat-ud-Dawa on its list of terrorist organizations earlier this year. Security analysts say it is little more than a front for Lashkar-e-Taiba.

Though it banned Lashkar-e-Taiba in 2002, Pakistan has taken no action against the charity, despite pressure from both the United States and India.

"We don't have any evidence of Jamaat-ud-Dawa involvement in terrorist activities, nor has the United States shared any evidence with us," Aslam said.

The Foreign Ministry spokeswoman said Saeed was put under house arrest because of some statements he had made.