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Cook Islands Takes Stand Against Financial Crime

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The Cook Islands, a small island nation in the Pacific, has taken significant steps to prevent financial crime and maintain its reputation as a safe and compliant jurisdiction for businesses and individuals.

Commitment to Compliance

In recent years, the government and financial services industry have prioritized compliance with international standards on money laundering and financial transparency. The Cook Islands has passed laws and regulations necessary to meet these standards, promoting compliant financial activity and business operations while maintaining its stability and progressiveness.

FATCA and CRS Implementation

The island nation has incorporated FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) into its laws, allowing for the automatic sharing of financial information for tax purposes. This demonstrates its commitment to transparency and cooperation with international authorities.

Enhanced AML/CFT Laws

The Cook Islands has enhanced its AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) laws and framework with the enactment of the Financial Transactions Reporting Act 2017 and other related legislation. This meets FATF’s recommendations for best practice and ensures a robust regulatory environment.

Tax Transparency and Compliance

The Cook Islands has joined the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and passed laws to remove tax regimes deemed preferential and harmful by the European Union. This demonstrates its commitment to transparency and cooperation with international authorities.

Balance Between Obligations and Confidentiality

While governments have a right to their rightful tax take, and those profiting from crime should not be encouraged, there needs to be balance struck between meeting international obligations and protecting individual confidentiality. The Cook Islands has achieved this balance by meeting its international requirements while retaining an individual’s right to legitimate confidentiality.

No Public Registers for Beneficial Ownership

The Cook Islands does not have public registers for beneficial ownership of incorporated entities or trusts. However, the Commissioner of the Financial Supervisory Commission and the Financial Intelligence Unit do have investigative powers where there is reason to believe financial misconduct has taken place. Information obtained will only be shared in accordance with the provisions of the law.

A Safe and Compliant Jurisdiction

The Cook Islands approach to meeting its international obligations while recognizing and providing legitimate confidentiality for those doing business in and with the island nation should give governments, institutions, businesses, and individuals globally great comfort. This approach gives the small island state increased credibility when dealing with international trade partners and financial institutions.

Contact Us

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