Cook Islands Strikes Balance between Compliance and Confidentiality in Banking Industry Regulations
The Cook Islands government has taken a proactive approach in ensuring compliance with international standards in the fight against money laundering, tax evasion, and financial crimes. This involves enacting laws and regulations that align with global requirements.
Key Measures to Ensure Compliance
- Integration of FATCA and CRS: The Cook Islands has integrated Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) into its legal framework for automatic financial information sharing. This ensures compliance with international standards on tax transparency.
- Strengthening AML/CFT Regime: The country has bolstered its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime with the Financial Transactions Reporting Act 2017. This law strengthens the country’s ability to combat money laundering and terrorist financing, in line with recommendations from the Financial Action Task Force (FATF).
- Elimination of Preferential Tax Regimes: The Cook Islands has joined 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 authority.
Balancing Compliance with Confidentiality
The Cook Islands strikes a balance between meeting international obligations and safeguarding confidentiality for legitimate businesses. Personal information remains protected, and the country maintains investigative powers while adhering strictly to legal provisions on information sharing.
This approach has enhanced the Cook Islands’ credibility globally, reassuring governments, institutions, businesses, and individuals that the jurisdiction is committed to transparency and compliance while preserving privacy. The country’s reputation as a cooperative tax authority strengthens its appeal for international trade and financial transactions.
Contact Information
- 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