Financial Crime World

Financial Institutions in the Cook Islands: Stringent Regulatory Requirements

The Financial Supervisory Commission (FSC) is responsible for overseeing all licensed financial institutions in the Cook Islands, including banks, insurers, money-changing and remittance businesses, and trustee companies. The commission’s role extends to operating the registry of various entities, such as:

  • International and foreign companies
  • Limited liability companies
  • International trusts
  • International partnerships
  • Foundations

Financial Intelligence Unit (FIU)

The FIU plays a crucial role in gathering intelligence on financial transactions and evaluating compliance with the Financial Transactions Reporting Act (FTRA) through examination processes. Additionally, the FIU:

  • Assists the Cook Islands Government in preventing money laundering
  • Promotes financial stability by supervising licensed financial institutions

Comprehensive Supervisory Framework

The FSC has implemented a comprehensive supervisory framework that adheres to internationally accepted standards, aimed at promoting:

  • Sound business practices
  • Financial stability in the sector

The commission also provides assistance to the government in developing the financial services industry, which is a significant contributor to the Cook Islands’ economy, accounting for around 8% of the country’s GDP.

Offshore Industry

The offshore industry in the Cook Islands has its roots in the early 1980s, with legislation providing for:

  • International companies
  • Insurance companies (including captives)
  • Other specialized entities

The industry offers a range of trustee and corporate services to offshore investors, with all offshore business conducted from the Cook Islands required to be channeled through registered trustee companies.

Regulatory Requirements

The regulatory requirements for financial institutions in the Cook Islands are designed to ensure:

  • Stability and integrity of the sector
  • Promotion of economic growth and development

By adhering to these stringent regulatory requirements, financial institutions in the Cook Islands can operate with confidence, knowing that they are subject to robust oversight and supervision.