Alleged NSW terrorist's brother bailed

The older brother of suspected terrorist Talal Alameddine has been charged over a $700,000 fraud and money laundering.

Rafat Alameddine gave a relieved thumbs-up to his family and friends as the magistrate said she would grant him bail on Thursday.

The 25-year-old was arrested during a police raid at his western Sydney home on Thursday morning and charged with knowingly directing the activities of a criminal group, money laundering and four counts of intention to fraud.

Talal Alameddine, 23, is accused of supplying the pistol used by schoolboy Farhad Jabar to kill police accountant Curtis Cheng outside police headquarters in Parramatta last year.

Thursday's raid at the Alameddine family home in Merrylands was carried out by police officers connected to the Joint Counter Terrorism Team's Operation Appleby.

However, police say, there is no suggestion Rafat Alameddine's charges relate to terrorism.

Court documents show Rafat Alameddine was part of a criminal group that lodged four fraudulent loan applications worth up to $176,646 each.

Ten other men were charged for their role in the criminal syndicate last year.

Alameddine appeared in the dock at Fairfield Local Court on Thursday afternoon and was supported by at least a dozen family and friends.

In her case for bail, Alameddine's lawyer Carolyn Davenport told the magistrate the 25-year-old had "strong community ties", a fiancee and solid employment at a family tree-lopping business.

"Your honour sees the number of people who are in court," Ms Davenport said, gesturing to the small crowd behind her.

Ms Davenport also said Alameddine's criminal history, although substantial, was not of concern to public safety.

"There are not offences, which in my respectful submission, would cause your honour to fear for members of the public," she said.

Magistrate Vivien Swain granted Alameddine bail on the condition that he not make contact with any of the other 10 men involved in the fraud racket.

This includes Masood Zakaria, who is both a co-worker and his cousin's husband.

Magistrate Swain ordered bail surety of $20,000 to be paid for his release.

She told Alameddine he must report to Merrylands Police Station twice a week until his next court appearance in the District Court on June 14.