Cook Islands Embraces Global Financial Standards, Striking a Balance Between Compliance and Confidentiality

The Cook Islands Government has made significant efforts to prioritize compliance with international financial standards, focusing on the prevention of money laundering, tax evasion, and other financial crimes. This approach has led to the enactment of laws and regulations that align with global requirements, ensuring the country’s commitment to meeting international obligations.

Cook Islands Meets Global Standards

The Cook Islands has taken significant steps to integrate into the global financial system by implementing:

Foreign Account Tax Compliance Act (FATCA): enables automatic exchange of financial information
Common Reporting Standard (CRS): facilitates automatic exchange of financial information
Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime: strengthened with the Financial Transactions Reporting Act 2017, ensuring compliance with recommendations from the Financial Action Task Force (FATF)

A Cooperative Jurisdiction

The Cook Islands’ decision to join the Organisation for Economic Co-operation and Development’s (OECD) Inclusive Framework on Base Erosion and Profit Shifting (BEPS) has been recognized as a cooperative tax jurisdiction. This move has eliminated preferential tax regimes, demonstrating the country’s commitment to fair taxation practices.

Striking a Balance Between Compliance and Confidentiality

While the Cook Islands strives to meet international obligations, it also ensures that legitimate businesses and individuals are protected from unwarranted scrutiny. The country maintains investigative powers but adheres strictly to legal provisions for information sharing, thus deterring “fishing expeditions.” This approach strikes a balance between promoting transparency and compliance while preserving confidentiality.

Enhanced Credibility for the Cook Islands

The Cook Islands’ commitment to international financial standards has enhanced its credibility globally. The country’s reassurance to governments, institutions, businesses, and individuals strengthens its appeal for international trade and financial transactions. By prioritizing transparency and compliance while preserving privacy, the Cook Islands promotes a secure environment for legitimate economic activities.

For More Information on Cook Islands Financial Regulations

For inquiries or further information on Cook Islands’ financial regulations, please contact:

P.O. Box 3255
Clarkes Building, Parekura
Rarotonga, COOK ISLANDS
Email: enquiry@fsda.gov.ck
Phone: +682 21-175

Office Hours: Monday to Friday: 8am - 4pm Saturday and Sunday: Closed