Financial Crime World

Cook Islands Banking Authority Issues Notice on Licence Terms and Conditions

The Cook Islands Banking Authority has published a notice outlining the terms and conditions imposed on licences issued under the country’s banking laws.

Licence Term and Condition

A licence remains in force until it is revoked or suspended by the Commission, or surrendered by the licensee. The Commission may revoke or suspend a licence if:

  • The licensee fails to commence carrying on banking business within three months of the issue of its licence
  • The licensee ceases to carry on banking business for more than three months
  • The licensee fails to pay an annual licence fee

Appealing a Licence Revocation or Suspension

A licensee may appeal a decision to revoke or suspend a licence to the Court within 21 days of the date the licence was revoked or suspended. In determining an appeal, the Court may:

  • Confirm the Commission’s decision
  • Vary the Commission’s decision
  • Revoke the Commission’s decision

Surrendering a Licence

A licensee may apply to surrender its licence if it has ceased to carry on banking business and has repaid all deposits held or administered by it. The Commission may approve the surrender of the licence and publish a notice of the surrender in any publication it considers appropriate.

Prudential Supervision

The Cook Islands Banking Authority is responsible for:

  • Undertaking prudential supervision of the banking business of licensees
  • Reviewing banking business
  • Implementing internationally accepted standards for the prudential supervision of banking business

Key Points:

  • A licence remains in force until revoked or suspended by the Commission, or surrendered by the licensee.
  • The Commission may revoke or suspend a licence if the licensee fails to commence carrying on banking business within three months, ceases to carry on banking business for more than three months, or fails to pay an annual licence fee.
  • A licensee may appeal a decision to revoke or suspend a licence to the Court within 21 days of the date the licence was revoked or suspended.
  • A licensee may apply to surrender its licence if it has ceased to carry on banking business and has repaid all deposits held or administered by it.
  • The Commission is responsible for undertaking prudential supervision of the banking business of licensees, reviewing banking business, and implementing internationally accepted standards for the prudential supervision of banking business.

Source: Cook Islands Banking Authority