The Charity Commission has opened a statutory inquiry into the Ipswich Kurdish Islamic Cultural Centre because of concerns about the charity’s financial controls.
The commission said concerns had been raised when a "sizeable section" of the charity’s assets had been loaned to two members of the local community.
The charity’s objects include running a mosque and focusing on the charitable needs of the Kurdish community in East Anglia.
The charity had an income of £14,700 and an expenditure of £11,500 for the year to the end of November 2013, but has not yet submitted accounts for 2013/14, which are about 10 weeks overdue.
The commission said in a statement today that the statutory inquiry was opened last week after a substantive investigation was concluded.
This comes after a compliance visit in March during which trustees were unable to provide records of all of the charity’s income and expenditure and had demonstrated inadequate internal financial controls, the commission said.
A commission statement said: "The trustees repeatedly failed to provide the information requested by the commission.
"This lack of cooperation by the trustees is evidence of misconduct in the administration of the charity and the lack of evidence provided raised concerns about a possible breach of the trustees’ duty to comply with the charity’s governing document and the law."
The commission has directed the charity to address its concerns and has placed it in monitoring to ensure it complies.
No one from KICC was available to comment.