The exercise forms part of a review of the Island’s compliance with international measures on money laundering and terrorist financing, ahead of a visit by the International Monetary Fund (IMF) in September of this year.

In a foreword to the consultation paper, Chief Minister Tony Brown MHK commented that:

"The Isle of Man is well known for its contribution to voluntary work and to charitable projects and the Island’s people have always shown considerable generosity in donating their time and resources to good causes."

"However, to maintain a successful economy for the benefit of its people, it is important that the Isle of Man meets international standards in safeguarding all sectors of our community, including the voluntary sector, against potential abuse for such purposes as money laundering and the financing of terrorism."

Mr Brown went on to add that:

"A key test of the Island’s compliance with these standards will be the forthcoming assessment by the International Monetary Fund (IMF). One of the IMF’s current concerns is the potential use of charities and other non-profit organisations (NPOs) around the world to facilitate the financing of terrorism."

"There is no suggestion that NPOs in the Isle of Man are being used for such purposes, and the Government fully recognises the good work that is done by the Island’s voluntary and charitable sector."

"However, it is prudent and timely to review the regulation of this type of organisation to ensure that the Island’s system is not vulnerable to abuse in future by international elements," he concluded.

The consultation paper is entitled - ‘Charities and other Non-Profit Organisations – invitation to comment on options for the registration, regulation and monitoring of such bodies to prevent their possible use in the financing of terrorism’.

The closing date for responses is 20th June, 2008.