Prince Charles is believed to have accepted a £1 million payment to one of his charities from the family of Osama bin Laden.
Sir Ian Cheshire, chairman of PWCF, said the donation was agreed "wholly" by the five trustees at the time.
Clarence House said: "The Prince of Wales's Charitable Fund has assured us that thorough due diligence was undertaken in accepting this donation. Sir Ian said: "The donation from Sheik Bakr bin Laden in 2013 was carefully considered by PWCF trustees at the time. "The decision to accept the donation was taken wholly by the trustees. Any attempt to suggest otherwise is misleading and inaccurate."
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