Ganj Madrassa in the northwestern city of Peshawar, officially known as Jamia Taleem-Ul-Quran-Wal-Hadith Madrassa, is the first seminary to be designated a terrorist organisation by the US. The sanctions forbid Americans from having any business interaction with it.
The US Treasury said Ganj Madrassa was being used as a training and recruiting base by Al Qaeda, Taliban and the Lashkar-e-Taiba, blamed for the 2008 Mumbai attacks that killed 166.
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Under the garb of religious education, students at the seminary are being trained to become bomb makers and suicide bombers for the three banned groups, the Treasury said. The seminary also facilitates funding for the groups.
A Pakistani security official confirmed that the religious school was hit with US sanctions.
The US Treasury said in a statement: "The activities of the Ganj Madrassa exemplify how terrorist groups, such as Al Qaeda, Lashkar-eTaiba, and the Taliban, subvert seemingly legitimate institutions, such as religious schools, to divert charitable donations meant for education to support violent acts."
The head of the seminary, Fazeel-A-Tul Shaykh Abu Mohammad Ameen Al-Peshawari alias Shaykh Aminullah, has been a US and UN-designated terrorist since 2009.