Cook Islands Concerned Over Proposed Blockchain Legislation

Tainted Cryptocurrency Recovery Bill 2023 Raises Red Flags

A proposed bill aimed at recovering tainted cryptocurrency has raised concerns over its potential impact on anti-money laundering measures in the Cook Islands. The Tainted Cryptocurrency Recovery Bill 2023 was tabled in Parliament last year and referred to a special select committee.

Concerns Over Validation of Hacking

The bill, drafted by US-based high-value debt collector Drumcliffe, could validate hacking into any account or system worldwide if approved in its current form. However, the Crown Law Office of the Cook Islands has stated that they were not consulted during the drafting process.

Ora Partners CEO Expresses Concerns

Ora Partners CEO Puai Wichman has expressed his concerns over the bill, saying it does not align with industry ethics and standards. “We cannot harm our international standing in the area of anti-money laundering, so we must first consult with international partners such as the European Union, the Organisation for Economic Cooperation and Development, and the Financial Action Task Force,” he said.

Positive Notes from Select Committee Hearing

Wichman praised the select committee hearing held on April 12, which showcased the devotion and diligence of civically engaged citizens who care about the future and reputation of the Cook Islands. He was impressed by the high-calibre submissions made by Crown agencies and said it reassures him that the country has good people in government who can stand up when their national interest is at stake.

Importance of International Cooperation

The Cook Islands is renowned for its asset protection trusts, a reputation built on the back of highly qualified and competent locals who have worked tirelessly over the past 40 years to build a trustworthy industry. Ora Partners emphasized that the legacy continues today with Cook Islanders speaking up and raising concerns over legislation that does not align with industry standards.

Strong Track Record in Fighting Financial Crimes

The country has a strong track record of fulfilling its commitments to fight tax evasion, money laundering, and financing of terrorism. “Meeting our responsibilities as a good international citizen is critical to the integrity of the Cook Islands,” Wichman said.

Industry Professionals Encouraged by Public-Private Sector Collaboration

Industry professionals are encouraged by the careful attention and assertiveness of various players in both the public and private sectors in the Cook Islands. However, concerns remain over how the bill progressed and its content, which suggests a geopolitical agenda.

Ora Partners to Continue Monitoring Progress

Ora Partners will continue to monitor the progression of the Tainted Cryptocurrency Recovery Bill and other finance-related legislation, demanding integrity and transparency from decision-makers. “We have the competence and capability to sort this matter out on our own,” Wichman said. “We have a solid parliamentary system, and the rule of law is paramount.”