The Charity Commission is investigating claims that a charity is referring women who want late abortions to clinics overseas.
Under UK law, terminations of healthy foetuses are banned after 24 weeks.
But the British Pregnancy Advisory Service, which carries out 50,000 abortions annually, has been criticised for putting helpline callers in touch with a Spanish clinic that aborts foetuses until 30 weeks.
Health secretary John Reid is taking advice on whether to prosecute the charity, which receives £12m from his department.
The charity said it was passing on information rather than breaking the law and it couldn't stop women seeking treatment abroad.
Anti-abortion charity Life, which doesn't receive any state funding, has called for BPAS to be stripped of its charitable status.
