A Toronto-based Muslim group wants the federal government to ban all foreign donations to religious institutions in Canada as one way of trying to curb the influx of extremist views.

The Muslim Canadian Congress, which is also seeking to limit individual domestic cash donations to $10 at a time, is proposing the measure as a means of deterring financial support for certain questionable groups whose influence has spread in some mosques.

The group suggests that credit cards or cheques be mandatory for donations above $10.

"This way everyone would know, Revenue Canada would know, the congregations would know, where the money is coming from and who are the legitimate donors," said Tarek Fatah.

There's been plenty of speculation about the extent of Islamic extremism in Canada, particularly in the wake of terrorist charges against 17 Muslim men and teens in the Toronto area.

Faisal Kutty, of the Muslim Civil Liberties Association, said the proposal is an overreaction to recent developments.

"It assumes money being raised in mosques is ending up in terrorist hands," Kutty said. "Where's the evidence for this? It's racist and discriminatory."

The polarized opinions would appear to reflect the wide diversity within the Canadian Muslim community, with organizations of varying size committed to different goals and different types of Islam.

But Fatah ? whose organization boasts 300 dues-paying members — said the blurring of religious and political causes within some mosques has long been known.

"He [Kutty] can say this is nonsense until the cows come home," he said. "We have the evidence that this is happening. They can fool non-Muslims but they can't fool us."

According to the Canadian Press, the Office of the Superintendent of Financial Institutions — which regulates banks, trust companies and other financial institutions — sent Minister of Finance Jim Flaherty a briefing note on suspicious transactions earlier in the year. It indicated that $180 million was linked to the financing of terrorism.

There was no indication in the documents of the path of the suspicious funds.

Prime Minister Stephen Harper had a private meeting with representatives from several Muslim groups in Toronto last weekend to discuss a range of issues, including ways to control extremist views at mosques and community centres.