According to ‘The Sunday Times', Prince Charles, the Prince of Wales, met with the Al Qaeda founder's half-brother Bakr in London and allegedly agreed to accept GBP 1 million.
The report added that several advisers who were close to Prince Charles, heir to Britain’s throne, advised him to return the money. However, his Clarence House office has denied that the royal was personally involved in the decision.
"The Prince of Wales' Charitable Fund (PWCF) has assured us that thorough due diligence was undertaken in accepting this donation," a Clarence House spokesperson told ‘Sky News’.
Charles, 73, agreed to the donation to the Prince of Wales Charitable Fund (PWCF) when he met with Bakr, 76, at Clarence House in London in 2013, despite objections of advisers from the trust and his office, the paper also claimed.
Osma bin Laden was the mastermind behind the infamous attack on the World Trade Center on September 9, 2001 in the US.
British police in February launched an investigation into another of Charles's charitable foundations over claims of a cash-for-honours scandal involving a Saudi businessman.
The head of The Prince's Foundation resigned last year after an internal investigation into the allegations.
Michael Fawcett, chief executive of the foundation, had initially agreed to suspend his duties following newspaper revelations about his links to a Saudi national.
The man, tycoon Mahfouz Marei Mubarak bin Mahfouz, had donated large sums to restoration projects of particular interest to Charles.
Fawcett, a former valet to the Prince of Wales who has been close to Queen Elizabeth II's heir for decades, is alleged to have coordinated efforts to grant a royal honour and even UK citizenship to Mahfouz.
Mahfouz reportedly denies any wrongdoing.
The Charities Commission, which registers and oversees charities in England and Wales, said in November it had opened a formal probe into donations received by Mahfouz's charitable trust which were intended for the prince's foundation.
The Prince's Foundation, set up in 1986, is not regulated by the Charities Commission but is registered with the Scottish Charity Regulator.
The Scottish body in September launched its own probe into reports that the foundation accepted cash from a Russian banker previously convicted of money laundering.
