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Cook Islands Banking Industry Regulations and Compliance Meet International Standards
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The Cook Islands has established a reputation as a stable and safe jurisdiction for businesses by implementing proactive regulations to combat money laundering and financial crimes.
Meeting International Standards
To meet international standards, the Cook Islands government has passed laws that promote compliant financial activity while maintaining client confidentiality. The country has incorporated:
- FATCA (Foreign Account Tax Compliance Act): Automatically shares financial information for tax purposes.
- CRS (Common Reporting Standard): Ensures transparency in financial reporting.
Enhanced AML/CFT Framework
The Cook Islands has strengthened its Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework with the enactment of:
- Financial Transactions Reporting Act 2017: Meets FATF recommendations for best practice in AML/CFT.
Tax Transparency and Compliance
The Cook Islands has joined the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS) to address tax evasion and other financial crimes. The country has also passed laws to remove preferential tax regimes deemed harmful by the European Union, solidifying its position as a cooperative jurisdiction for tax purposes.
Confidentiality in Personal Financial Affairs
Despite the push for global transparency, there is still a need for confidentiality in personal financial affairs. The Cook Islands has struck a balance between meeting international obligations and retaining an individual’s right to legitimate confidentiality.
Beneficial Ownership
The Cook Islands does not maintain public registers of beneficial ownership of incorporated entities or trusts. However, investigative powers are in place with the Commissioner of the Financial Supervisory Commission and the Financial Intelligence Unit. Information obtained through these investigations is shared only as permitted by law.
Cook Islands Approach
The country’s approach to meeting international obligations while maintaining confidentiality provides governments, institutions, businesses, and individuals globally with confidence when dealing with its financial services industry. This increased credibility gives the Cook Islands an advantage in international trade partnerships and financial institutions, making it harder for them to justify risks associated with money laundering or other financial crimes.
Contact Us
For more information on compliance in the Cook Islands financial services industry, contact our team at Cook Islands Finance.