A package of measures, including legislative updates, is being developed by the Financial Services Authority and Department of Home Affairs aimed at protecting Isle of Man charities that work overseas from the possibility of abuse by terrorist groups.

The changes will enable the island’s authorities to assess risks and apply sensible, proportionate safeguards while not discouraging legitimate charitable activities that have such a positive impact on society both locally and internationally.

A consultation launched on Monday, on the government’s online engagement hub is inviting feedback on plans to modernise the island’s Countering the Financing of Terrorism (CFT) framework for the Non-Profit Organisation (NPO) sector.

The island is renowned for its generosity, with significant sums being raised and distributed every year to local and international good causes.

This is reflected in the NPO Terrorist Financing National Risk Assessment, which is scheduled for publication later this month.

The report champions the vital role played by NPOs but recognises the potential for those with international exposure to be exploited by terrorist organisations to raise and transfer funds, often to high-risk countries, under the guise of legitimate charitable activities.

Updating the SNPO framework has been identified as an important step in protecting the highly valued work of volunteers and trustees.

The new definition of a Specified Non-Profit Organisation* (SNPO) set out in the draft SNPO (CFT) Code 2026 will result in a slightly broader SNPO population operating under simpler, risk-based requirements, with enhanced support and oversight.

Once the SNPO Code is updated to align with current international standards, the Authority will contact the small number of impacted charities to offer support, including access to free training, dedicated webpages, guidance, FAQs and videos, together with template documents to help them meet the requirements of the Code.

Drop-in sessions for charities and volunteers will take place during the consultation period, with further details to be published in early February.

In line with the current position, any SNPO affected by the changes will not be charged an application or annual fee by the Authority, while training and outreach will be provided from within existing resources.

Minister for Justice and Home Affairs Jane Poole-Wilson said: ‘I am grateful for all the energy, commitment and hard work undertaken by volunteers, fundraisers and the people of our island who so generously donate to good causes to benefit those less fortunate on-island and overseas.’

She added: ‘While there have been no cases of terrorist financing involving Isle of Man charities, this consultation is part of a wider body of work aimed at staying ahead of the risks.

‘The proposals seek to protect our volunteers from terrorists and terrorist financiers who may be trying to abuse our NPO sector. Significant support will be available to help our charities and volunteers and ensure a smooth transition to the updated SNPO Code.’

Consultation responses can be provided via the ‘Online Survey’ link on the Engagement Hub.

Alternatively, written feedback should be sent to Dylan Pycroft, manager – AML/CFT Supervision Division, Financial Services Authority, PO Box 58, Finch Hill House, Bucks Road, Douglas, IM99 1DT, email: [email protected].

The closing date for submissions is Monday, March 2.