Newsweek is reporting a federal investigation into the bank accounts of the Saudi Embassy in Washington has identified more than $27 million in “suspicious” transactions, including hundreds of thousands of dollars paid to Muslim charities and to clerics and Saudi students who are being scrutinized for possible links to terrorist activity. Riggs Bank of Washington recently dropped the Saudis as a client.

According to Newsweek, the current probe, by the FBI and Treasury Department, is one of the most sensitive financial inquiries now being conducted by the government and is being closely monitored by the White House. The 9/11 Commission has also been briefed on developments.