A TUNISIAN banker accused of financing Islamic terrorists is being monitored in Dublin by garda Special Branch.

Chafiq Ayadi, 43, has been accused of providing financial support to Osama Bin Laden’s terrorist network.

Ayadi’s name appeared on a terrorist list issued by the United Nations security council after the terrorist attacks on New York and Washington in September 2001.

When challenged by The Sunday Times outside his home to discuss his alleged role in financing terrorism last week, he declined to comment. “Please talk to my solicitor,” he said. “I have been told to say nothing.”

Ayadi moved to Ireland from Britain in late 2002 when the UN circulated a list of 39 key suspects, businesses, charities and companies thought to be involved in terrorist fundraising. The European Union adopted the list and instructed banking institutions in member states to take immediate action.

Ayadi was then living in a rundown flat in St John’s Wood, northwest London, but also had addresses in Munich, Vienna, Tunisia, Bosnia and Belgium. The security services suspected he visited New York twice before the 9/11 attacks.

The Treasury immediately froze his assets. Gordon Brown, the British chancellor, said the authorities were taking “decisive action” with Washington to target those funding terror attacks. The Treasury said those on the list were believed to have “committed or pose a significant risk of committing or providing material support for acts of terrorism”.

It circulated a bulletin saying Ayadi had nine aliases, used two dates of birth and held Bosnian nationality. It supplied details of his passport numbers and the names of his parents. He was named in the memo as Bin Muhammad, Ayadi Chafiq.

He disappeared until 2002 when Special Branch working in conjunction with MI5 traced him to Dublin. Interpol and American authorities were then alerted to his presence here.

He is now living with his wife and six children in a three-bedroom, semi-detached house in Rathfarnham, south Dublin, although detectives say he sometimes stays at two other addresses in the city. His neighbours say he keeps to himself.

“The family have been living here for a number of years,” said one. “I don’t even know their names, but they don’t bother anyone.”

Although Ayadi has not been charged with any offence in Ireland, Special Branch and army intelligence discreetly monitor his activities and associates. Security forces say there is no evidence to indicate he has been involved with any terror groups since his arrival in Ireland.

He is thought to be one of six people referred to by Bertie Ahern in a recent Dail speech on suspects linked with Islamic terrorists. “As I understand it, a small number of people are closely watched and monitored. These are considered to be highly classified people that come and go from this country,” the taoiseach told the Dail.

Gardai and army intelligence provide regular threat assessments to the Department of Justice and the taoiseach’s office. These are based on advice from all intelligence sources including material from MI5, the CIA and other European agencies.

Although Islamic extremism does not pose a significant problem for Irish security services, Noel Conroy, the garda commissioner, has created a unit within Special Branch to collate and gather intelligence on suspects. Members of this unit are tasked with monitoring Ayadi.

The Central Bank has frozen the bank accounts of six people living in Ireland who are suspected of involvement in terrorist activities, among them accounts controlled by Ayadi.

The Tunisian has protested his innocence of the terrorist allegations. He brought a case to the European Court of First Instance, attempting to force the Irish and British governments to lift a freezing order on his accounts. He lost the case.

The court ruled that EU member states must be allowed to freeze funds “in the context of the battle against international terrorism”. The measure, claimed the authorities, did not prevent Ayadi from leading “a satisfactory personal, family and social life”.

The gardai have also refused to issue him with a taxi license, forcing him to rely on unemployment and rent allowances.

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