A Danish court on Tuesday acquitted two members of the country's branch of a Palestinian foundation of charges of financing terror.

Rachid Issa, chairman of the Al Aqsa Foundation in Denmark, and his deputy, Ahmad Suleiman, were charged in December 2005 with having violated a part of the anti-terror law that prohibits economic support for terror groups.

In 2002, the organization transferred nearly 500,000 kroner, about $61,000 at the time, to the Islamic Charitable Society and the World Assembly of Muslim Youth, which Danish prosecutors said was part of Hamas.

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The European Union, the United States and Israel consider Hamas a terrorist organization.

But the Copenhagen City Court ruled there was no evidence that the money ended up in Hamas' hands.

Issa and Suleiman were the first to be charged under Denmark's anti-terror laws after they were tightened following the September 11 attacks. The two men had pleaded innocent.

It was not immediately clear whether prosecutors would appeal the ruling.