Financial Crime World

Cook Islands Making Strides in Fighting Financial Crime, but Challenges Remain

The Cook Islands, a Pacific Island nation, is making progress in implementing laws and regulations against financial crime, including corruption and money laundering. However, the country faces several challenges in further strengthening its framework, as identified in a recent review by the United Nations Convention Against Corruption (UNCAC).

  • The Cook Islands is a party to the UNCAC since 2011.
  • It has a mixed legal system, including English common law and statutes from the UK, New Zealand, its own legislature, and customary laws.
  • The country has several bodies and agencies focused on preventing and combating financial crime:
    • Crown Law Office
    • Financial Supervisory Commission
    • Financial Intelligence Unit

Preventive Measures

  • Developing a National Anti-Corruption Strategy
  • Promoting principles of good governance
  • Enhancing the independence of prevention bodies

Challenges

  • Effective implementation of the National Anti-Corruption Strategy
  • Allocating adequate resources

Asset Recovery

  • Cook Islands has replied favorably to 5 incoming requests for asset restraint and recovery.
  • No outgoing requests have been sent yet.

Relevant Legislation

  • Section 39 of the Financial Intelligence Unit Act allows disclosure of information related to financial misconduct.

Identified Successes and Good Practices

  • Awareness-raising efforts by the Ombudsman on the Official Information Act
  • Extensive training offered to the Government, Parliament, and public

Areas for Improvement and Recommendations

  • Adopting anti-corruption legislation
  • Strengthening independence of appointment processes
  • Addressing price-fixing in the public procurement system

Technical Assistance

  • The Cook Islands welcomed technical cooperation offered by international organizations.

Future Challenges

  • Addressing challenges identified in the review
  • Continuing progress in financial crimes prevention
  • Building on partnerships with international organizations

Overall, the Cook Islands has made significant strides in implementing laws and regulations against financial crime. However, challenges remain, particularly in the areas of effective implementation of preventive measures and addressing corruption in public procurement. The country’s partnerships with international organizations and the commitment of its authorities to implementing the UNCAC and other relevant laws will be crucial in ensuring a comprehensive and effective approach to tackling financial crime.

References

  • United Nations Convention Against Corruption (UNCAC)
  • Eleventh session of the Implementation Review Group (IRG) in Vienna, June 29-July 1, 2020
  • Cook Islands Executive Summary, UNCAC IRG Review, 2020.