Cook Islands Embraces International Standards to Combat Financial Crime
The Cook Islands government has made significant strides in ensuring compliance with international standards to combat financial crimes such as money laundering and tax evasion. By enacting laws and regulations that align with global requirements, the island nation has become a cooperative jurisdiction for international trade and financial transactions.
Key Legislation: The Financial Transactions Reporting Act 2017
The Cook Islands government has enacted the Financial Transactions Reporting Act 2017 to strengthen its Anti-Money Laundering and Counter-Terrorism (AML/CFT) regime. This move comes in response to recommendations from the Financial Action Task Force (FATF).
- The legislation aims to prevent and detect money laundering, terrorist financing, and other financial crimes.
- It requires financial institutions to report suspicious transactions and maintain accurate records.
Global Tax Transparency
The Cook Islands has also embraced global tax transparency by joining the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS). By eliminating preferential tax regimes, the jurisdiction is recognized as a cooperative tax jurisdiction.
- The Cook Islands aims to ensure that profits are taxed where economic activities take place and value is created.
- This move enhances the jurisdiction’s credibility globally and strengthens its appeal for international trade and financial transactions.
Balancing Compliance and Confidentiality
While the Cook Islands has taken steps to meet international obligations, it also strikes a balance between compliance and protecting confidentiality for legitimate businesses. The jurisdiction maintains investigative powers but adheres strictly to legal provisions when it comes to information sharing, preventing fishing expeditions.
- This approach ensures that the Cook Islands remains an attractive destination for foreign investors while maintaining its commitment to transparency and compliance.
- It also enhances the jurisdiction’s credibility globally, reassuring governments, institutions, businesses, and individuals of its commitment to transparency and compliance.
Contact Information
For more information about Cook Islands financial regulations, contact:
- PO Box 3255
- Clarkes Building, Parekura
- Rarotonga, Cook Islands
- Email: enquiry@fsda.gov.ck
- Phone: +682 21-175
Office Hours: Monday - Friday: 8AM - 4PM Saturday - Sunday: Closed