Taleban leaders fear an attack by the US
The reclusive Taleban leader, Mullah Mohammad Omar, said Mr Bin Laden could not have masterminded the attacks because he lacked the capacity do so.
The Taleban says it will only consider extraditing Mr Bin Laden if the US provides "solid and convincing" evidence of his involvement in terrorism.
Mullah Omar's statement comes as Afghanistan is bracing itself for possible military retaliation from the US.
The Taleban has denied reports that Mr Bin Laden is under house arrest, but said it had restricted his contact with the outside world, thus making it difficult for him to run any kind of global network.
The Taleban representative in Pakistan said Mr Bin Laden had no fax, internet connection or satellite phones.
Earlier, in his first statement since the attacks, Mullah Omar said: "The incidents which took place in America are testimony to Osama Bin Laden's innocence because where are Osama's pilots and where were they trained?"
But the BBC's Susannah Price in Islamabad says the denials are unlikely to convince the US, which has labelled Osama Bin Laden as their prime suspect and says he controls a huge international network.
The Associated Press quotes congressional Research Service estimates that Mr Bin Laden has $300m in personal assets.
Paying the price
Ordinary Afghans fear they will be made to pay the price for the fact that their leaders are hiding Mr Bin Laden, now the most wanted man in the world.
"A civilised country like the US should not resort to revenge like striking Afghanistan as millions of people live here many of who may not like the Taleban or Bin Laden," Reuters quoted a teacher as saying.
Kabul residents have said Muslim militants, known as Afghan Arabs, have fled the capital and others have started digging trenches around the city.
And amid the fears of a US operation, diplomats representing eight foreign aid workers on trial for spreading Christianity have also left the city for Pakistan.
The US has previously described Afghanistan as a "school for terrorists". Muslim militants from the Middle East, Philippines, Central Asia and China have trained there.
Militants are now reported to have evacuated their bases around the country.
The BBC's John Simpson said a source who had met Mr Bin Laden just two days ago said the Saudi dissident had been stripped of all of his complicated and sophisticated communications equipment.
An aide for Mr Bin Laden quoted him as denying he had planned the attack, but calling it a "punishment from Allah".
"I have no information about the attackers or their aims and I don't have any links with them," the aide quoted Mr Bin Laden as saying.