Third District Representative Hon. Julian Fraser, RA, told the House of Assembly on October 11, 2012 that the Bill entitled, “Non-Profit Organisations Act, 2012” was "too heavy" and could discourage persons from getting involved in voluntary work. Photo: GIS

The Bill was presented by Minister for Health and Social Development Hon. Ronnie W. Skelton, who said recommendations of the Financial Action Task Force (FATF), which sets International Standards for combating money laundering and financing of terrorism, require countries to review their adequacy of laws and regulations that relate to entities such as non-profit organisations, which can be used for financing of terrorism.

Non-profit organisations would have to be regularised and ensure that the necessary stipulations are put in place or face heavy fines or even imprisonment.

According to Hon. Fraser, “who would have thought that innocent organisations, with no other purpose in life but to help those in need could be subjected to legislation as heavy as this…This legislation in total ignorance can scare the living daylight out of anyone who has involvement in these organizations, the real non-profit organisations that are out there with no other intention but to do good.”

He said when the legislation was first touted around the Territory it did just that. “It scared a lot of people involved in non-profit organisations.” He told the Third Sitting of the 3rd Session of the Second House of Assembly that he had received verbal and written concerns about the legislation from many persons who understood that there was need for such legislation but for one that was “reasonable”.

Hon. Fraser added that judging from the definition of NGOs in the legislation there isn’t anything that will escape from this “net”. “I wonder if those of us that have campaign committees, district committees or whether, does this net harness it?” He also noted that there were many church organisations and wanted to know if they would also fall under the umbrella of church organisations or under that “net”.

“Madam Speaker, I don’t believe that we should be so blinded as to throw the baby out with the bath water. Sometimes you got to step back, Madam Speaker, and wonder if what is happening and what is going on is best for me...it is good (legislation), the question is, is it best for me? And that is where discussions and negotiations come into play.”

The Member of the Opposition suggested that Government would need to set up a body where persons could go to get a better understanding of the legislation and what they would be subjected to. He anticipated, however, that many organisations may still not come forward and that the law in this regard would be broken mainly out of ignorance of the law. “What is the Minister doing to assist and educate the public to get the various NGOs regularised?”

Hon. Fraser also had concerns about certain sections of the bill and included NGOs being subjected to inquiry if suspected of financing terrorism and money laundering. “How do we go about suspecting people?”

Premier Dr. D. Orlando Smith said the bill was necessary in order for the Territory to follow international policy or risk being blacklisted, something which a country that depends heavily on financial services could not afford. 

He said despite the difficulty that the legislation may pose to NGOs there was still the need for voluntary work in the Territory and promised Government’s backing as longs as the policies are followed.

He admitted too that there was need to make the bill a “little bit more easy for the small organisations”. “We have their back and will make sure that we help you once you help yourself and do what is necessary in the confines of the bill and your organisation will prosper,” Premier Smith assured.

Opposition Leader Ralph T. O’Neal said he agreed wholeheartedly with the intentions of the Bill but there were certain things (in the Bill) that may have to go through changes.

“Apart from it being important to keep the jurisdiction as clean as possible we have to take into account that while we can say it cannot or wish it to not happen there are some people or bandits... who would do anything to get money,” Hon. O’Neal stated.

He also said he didn’t think persons working for NGO’s would be “hurt” as a result of the legislation. “Common sense will prevail and if there are certain changes to be made so that no one would get hurt then let that be done but do not let us keep back getting it into law and into force.”

Noting the invaluable contributions to society by non-profit organizations, Minister Skelton said, however, that globalisation means that the Territory cannot turn a blind eye to the far reaching effects of terrorism arising out of religious and political violence around the globe. “The VI doesn’t operate on the back hill, but on the international stage.”

He also stated that the ongoing international campaign against terrorist financing has uncovered the fact that terrorist organisations exploit non-profit sectors to raise funds and to recruit manpower and other resources.

It was also said that earlier this year, the Financial Action Task Force published its revised international standards on combating money laundering and financing of terrorism. The FATF recommendations are used by more than 180 governments around the world to guide their efforts to combat terrorist financing and money laundering and to provide a benchmark to assess each country’s terrorist financing and anti-money laundering regime through a process of mutual evaluations.

“Against this backdrop the Government of the Virgin Islands is therefore seeking to facilitate the ongoing work and contributions of non-profit organisations through enactment of appropriate legal framework and regulatory framework. The framework will provide stability and certainty for non-profit organisations and increase public confidence in the work of such organisations.”

Furthermore, Hon. Skelton stated, government will support initiatives that increase public understanding of the roles and contributions of the non-profit organisations.

“The Bill therefore seeks to register and monitor the activities of non-profit organisations in the VI. The registration of non-profit organisations in the Virgin Islands will satisfy the recommendations of the Financial Action Task Force.”

The FATF is an inter-governmental organisation founded in 1989 as a policy making body that sets the international and anti-money laundering standards and counter-terrorism financing measures.

The passage of the Non-Profit Organisations Act, 2012, according to Hon. Skelton, will bring the Territory into compliance with international regulatory standards.

Meanwhile, the Third Sitting of the 3rd Session of the Second House of Assembly resumes on Monday October 15, 2012 when it is expected that the Bill would be passed.