Cook Islands Financial Institutions Face High Regulatory Standards
The Cook Islands’ Financial Supervisory Commission has reaffirmed its commitment to upholding international standards for financial regulation, anti-money laundering (AML) and countering the financing of terrorism (CFT) controls.
Commitment to Regulatory Excellence
Commissioner Louise Wittwer emphasized that the commission’s regulatory framework is designed to ensure high standards are met across all aspects of the Cook Islands’ financial sector. “Like all jurisdictions around the world, we have been independently assessed by international bodies against our standard of implementation of the Financial Action Task Force’s (FATF) international standards on AML/CFT,” Wittwer said.
Comprehensive Evaluation Report
The commission’s commitment to regulatory excellence was recently demonstrated through a comprehensive evaluation report published in September 2018. Conducted by the Asia/Pacific Group on Money Laundering (APG), the report praised the Cook Islands for its technical compliance with 38 out of 40 FATF Recommendations, earning a rating of “Largely Compliant” or “Compliant”. The commission’s AML/CFT system was also found to be effective, with five ratings of “Substantial”.
Enhancing Regulatory Framework
To further enhance its regulatory framework, the Cook Islands enacted a new Financial Transactions Reporting Act in 2017. This legislation:
- Expanded due diligence requirements for beneficial owners
- Provided legislative authority for implementation of a risk-based approach by all reporting institutions
Global Forum on Transparency & Exchange of Information for Tax Purposes Peer Reviews
The commission has also been successful in its evaluation as part of the Global Forum on Transparency & Exchange of Information for Tax Purposes Peer Reviews, receiving an overall rating of “Largely Compliant” in 2015.
Ongoing Efforts to Maintain Regulatory Excellence
As the country continues to demonstrate its commitment to international standards, the Financial Supervisory Commission remains dedicated to maintaining a high level of prudential supervision across all aspects of the Cook Islands’ financial sector. The commission’s active legislative and supervisory reform program ensures that regulatory requirements are constantly updated and refined to meet evolving international best practices.
Transparency Initiatives
As part of its efforts to maintain transparency, the commission administers the International Registries of Companies, Trusts, Foundations, Partnerships and Limited Liability Companies, providing publicly accessible information on filings. The recorded registered office addresses can be accessed through proper channels by law enforcement agencies and other competent authorities.
This commitment to regulatory excellence ensures that the Cook Islands’ financial institutions operate in a robust and secure environment, while also maintaining transparency and accountability.