Cook Islands Financial Services Industry: A Model of Compliance

The Cook Islands has emerged as a leader in implementing international financial regulations to combat money laundering and tax evasion. This commitment to compliance has solidified its reputation as a safe and stable jurisdiction for businesses.

Meeting Global Standards

In recent years, the government has passed laws and regulations to align with global standards, promoting compliant financial activity while maintaining client confidentiality. The Cook Islands has:

• Implemented FATCA and CRS: Enhanced its Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) framework with the Financial Transactions Reporting Act 2017.
• Joined the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS): Passed laws to remove preferential tax regimes deemed harmful by the European Union.

A Balance Between Transparency and Confidentiality

While governments seek greater transparency in financial matters, the Cook Islands has struck a balance between meeting international obligations and preserving individual confidentiality. The:

• Commissioner of the Financial Supervisory Commission and the Financial Intelligence Unit: Have investigative powers to combat financial misconduct, but information sharing is strictly regulated.

Confidence in Compliance

The Cook Islands’ approach gives global institutions, businesses, and individuals confidence when dealing with its financial services industry. This increased credibility should reduce concerns about money laundering or other financial crimes, making it harder for partners and institutions to justify avoiding transactions with Cook Islands businesses.

For more information on compliance in the Cook Islands financial services industry, contact Cook Islands Finance’s team.