Title: Cook Islands’ Controversial New Bill: US-Backed Legislation Sparks Alarm Over Cybercrime and Constitutional Concerns

Controversial US-Drafted Bill in the Cook Islands

The Cook Islands Parliament has tabled a bill that raises alarm over potential hacking authorization and constitutional violations. Known as the Tainted Cryptocurrency Recovery Bill 2023, the legislation was drafted by at least two Cook Islands-based lawyers from Drumcliffe, an international debt collection firm.

Origin and Concerns

1. Exclusion of Cook Islands’ Crown Law: The bill was drafted without the involvement of the Cook Islands’ Crown Law, which raises questions over democratic processes.
2. Potential Cyberattacks: Critics argue that the bill’s broad scope could lead to cyberattacks against various entities, potentially causing serious consequences.
3. Constitutional Concerns: The Deputy Solicitor General of the Cook Islands, David Greig, considers the bill “flawed” and “unconstitutional,” expressing concerns about its international implications and relationships.

Implications Beyond the Cook Islands

1. New Zealand’s Realm Status: The bill’s implications extend to New Zealand due to the Cook Islands’ realm status. Otago University’s international affairs commentator, Professor Robert Patman, expressed concern, stating that it might impact New Zealand’s governance arrangements.
2. Impact on Digital Privacy: The bill’s broad scope allows for the investigation of anyone suspected of having or potentially having tainted cryptocurrency, raising concerns about digital privacy.

Potential Harm to the Cook Islands’ Financial Services Industry

1. Contribution to the Economy: The trust industry, a significant contributor to the Cook Islands’ economy with nearly NZ$20 million in fees and taxes between 2018 and 2022, may face potential harm if the bill is enacted.

Expert Opinions

1. Jeff Nijsse - Cryptocurrency specialist and Senior Lecturer at AUT, emphasized the difficulty of seizing cryptocurrencies without users’ help.
2. MFAT’s Monitoring of the Situation: New Zealand’s Foreign Minister Winston Peters’ spokesperson shared that MFAT is closely monitoring the situation and engaging with Cook Islands officials in discussions.

References

This article is based on investigative reports by 1News and various sources mentioned within the text.