The Australian Federation of Islamic Councils says it has been forced to suspend most of its payments and all of its charitable activities while a leadership dispute continues.
AFIC's bank has frozen its funds until the present board can produce evidence it is the properly-elected body.
The fund freeze affects staff payments and the $40-thousand-dollar annual salary of the senior cleric, Sheik Taj Aldin Al Hilaly.
Rahim Ghauri, who says he was elected president after the first election results were disputed, says he's working with the bank to have the funds unfrozen.
“We provided them the minutes, written by our former employee, Amjad Mehboob. The elections were conducted by the outgoing group. We provided those minutes and we provided all the evidence we had from the minutes books. It's up to the bank to accept it or not, and apparently they haven't accepted it yet,” Mr Ghauri said.