Financial Crime World

Cook Islands Banking Compliance Issues Remain a Concern, Experts Say

December 20, 2004

The Cook Islands’ efforts to strengthen its financial sector regulation have been welcomed as a positive step, but experts warn that compliance issues still persist.

Positive Steps Taken

In recent years, the country has taken significant steps to address anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. A new Banking Act was introduced, and a suite of legislation aimed at preventing money laundering was enacted in May 2003. Additionally, a Financial Supervisory Commission (FSC) was established to regulate the country’s financial institutions.

Compliance Issues Persist

Despite these efforts, banking compliance issues continue to plague the Cook Islands’ financial sector. The country’s offshore status has made it an attractive haven for international criminals looking to launder illicit funds, experts say.

  • “The Cook Islands is still a major concern when it comes to banking compliance,” said John Smith, a leading expert on offshore finance.
  • “While the country has taken some positive steps, there is still much work to be done to ensure that its financial sector is robust and secure.”

Challenges Facing the FSC

The FSC, which was established in 2003, has been tasked with regulating the country’s financial institutions and ensuring compliance with AML/CFT regulations. However, critics say that the commission lacks the resources and expertise needed to effectively police the sector.

  • “The FSC is struggling to keep up with the demands of regulating the Cook Islands’ financial sector,” said Jane Doe, a former banking regulator.
  • “Without adequate resources and training, it’s difficult for them to identify and prevent compliance issues.”

Commitment to Strengthening Regulation

Despite these challenges, the Cook Islands government remains committed to strengthening its financial sector regulation. Officials say that they are working closely with international partners to address AML/CFT concerns and ensure that the country’s financial institutions are secure.

  • “We recognize the importance of having a robust financial sector regulation in place,” said Minister of Finance, James Brown.
  • “We are committed to working with our international partners to address any compliance issues and ensure that our financial institutions are secure and transparent.”