Cook Islands Fall Short in Anti-Money Laundering Efforts, Says Global Watchdog Group

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The Financial Action Task Force (FATF), a global standard-setter for anti-money laundering (AML) and combating the financing of terrorism (CFT) measures, has evaluated the Cook Islands’ AML/CFT framework. The assessment revealed that the country’s AML laws are in need of significant improvement.

Technical Compliance

The FATF evaluation found that the Cook Islands received a rating of “partially compliant” in terms of technical requirements. While some necessary measures have been implemented, there are still significant gaps and weaknesses in areas such as:

• Regulations governing cash transactions
• Wire transfers
• Beneficial ownership

Effectiveness

In terms of effectiveness, the Cook Islands received a rating of “low level of effectiveness”. The assessment highlighted several areas for improvement, including:

• More effective enforcement powers
• Improved customer due diligence requirements
• Enhanced cooperation with international partners

The FATF evaluation emphasized that the Cook Islands’ AML/CFT system is not achieving key goals such as:

• Preventing the misuse of companies and trusts
• Identifying and freezing terrorist assets
• Disrupting money laundering networks

Call for Improvement

The government has vowed to address the issues raised by the FATF and improve the effectiveness of its AML/CFT measures. However, the Cook Islands’ anti-money laundering efforts remain under close scrutiny, with many calling for further action to ensure that the country’s financial system is not exploited by criminal networks.

Concerns Over Transparency and Accountability

The Cook Islands’ anti-money laundering laws have been under scrutiny in recent years due to concerns over lack of transparency and accountability in financial transactions. The FATF assessment is seen as a critical step towards strengthening the country’s AML/CFT framework and preventing the misuse of its financial system for illicit purposes.

Next Steps

The government must now take concrete steps to address the issues raised by the FATF evaluation. This includes:

• Implementing effective enforcement powers
• Improving customer due diligence requirements
• Enhancing cooperation with international partners

Only through a concerted effort can the Cook Islands ensure that its financial system is not exploited by criminal networks and that it complies with global AML/CFT standards.