Jacqui Lambie is threatening to introduce a private senator's bill to stop what she believes is "halal money" funding terrorist group Islamic State.

In a late-night address to the upper house on Tuesday, the outspoken independent senator questioned whether halal certification funds militants in Syria and Iraq.

Jacqui Lambie says she has received "hundreds" of emails from concerned residents. Credit:Alex Ellinghausen

She said she was prompted to look into the issue after receiving hundreds of emails from concerned residents.

A study the Tasmanian senator commissioned the parliamentary library to examine exposed some "surprising facts" that alarmed her.