Palestinians carry injured as Israeli forces fire tear gas at the Israel-Gaza border on June 29. Australia reallocated its $10 million funding of the Palestinian Authority from the World Bank to a United Nations agency on Monday out of fear the funding is used to support terrorist activities. Photo by Ismael Mohamad/UPI | License Photo

July 2 (UPI) -- Australia's funding of Palestine through the World Bank was stopped on Monday, the country's foreign ministry said Monday, out of concern the money is aiding terrorism.

The reallocation of $10 million will move the money from the World Bank Multi-Donor Trust Fund and directed to the United Nations' Humanitarian Fund for the Palestinian Territories.


The U.N. fund provides basic services to Palestinians, including healthcare, food, water, improved sanitation and shelter. The majority of the money in the fund is spent in Gaza.

"I wrote to the Palestinian Authority ... to seek clear assurance that Australian funding is not being used to assist Palestinians convicted of politically motivated violence," Australia Foreign Minister Julie Bishop said in a statement.

"However, I am concerned that in providing funds for this aspect of the PA's operations there is an opportunity for it to use its own budget to activities that Australia would never support."

Bishop added she's confident no Australian contributions have been misused.