Cook Islands Leads the Way in Combating Financial Crime
Strengthening Reputation as a Secure and Compliant Financial Hub
The Cook Islands has taken significant steps to enhance its reputation as a secure and compliant financial hub by implementing rigorous laws and regulations to combat money laundering, tax evasion, and other financial crimes. The island nation’s commitment to international standards has been evident in recent years, with the government passing legislation to meet FATCA and CRS requirements for automatic sharing of financial information.
Tax Transparency: A Balance Between Compliance and Confidentiality
The Cook Islands’ stance on tax transparency is a delicate balance between meeting international obligations and protecting individual confidentiality. By joining the OECD’s Inclusive Framework on Base Erosion and Profit Shifting, the country has demonstrated its commitment to removing harmful tax regimes and promoting global cooperation.
- Benefits of Tax Transparency
- Removal of harmful tax regimes
- Promotion of global cooperation
- Enhanced credibility as a compliant financial hub
However, in a bid to maintain legitimate confidentiality for law-abiding businesses and individuals, the Cook Islands has chosen not to establish public registers of beneficial ownership. Instead, investigative powers are reserved for cases where there is reasonable suspicion of financial misconduct, with information shared only in accordance with the law.
A Credible Partner for International Trade
The Cook Islands’ approach to combating financial crime should give reassurance to governments, institutions, businesses, and individuals worldwide when dealing with the jurisdiction’s financial services industry. The country’s credibility as a compliant partner for international trade is strengthened by its commitment to transparency and accountability, making it harder for others to justify avoiding transactions with Cook Islands businesses due to perceived risks of money laundering or other financial crimes.
For more information on compliance in the Cook Islands financial services industry, contact Cook Islands Finance today.