Report: Schools launder terror money

ISLAMABAD, Pakistan, March 4 (UPI) -- A U.S. State Department report says terrorist groups have used schools in Pakistan to launder money and finance their activities.

"Another issue is the use of madrassas (religious schools) as training grounds for terrorists," Pakistan's Dove newspaper quoted the report, the International Narcotics Control Report for 2007, said the Press Trust of India.

"The lack of control of madrassas, similar to the lack of control of Islamic charities, allows terrorist organizations to receive financial support under the guise of support of Islamic education," the newspaper quoted from the report.

Dove reported the United States does not consider Pakistan a center for money-laundering. The U.S. report said money-laundering in Pakistan is often done through the alternative remittance "hawala" system, the Press Trust of India reported.