Cook Islands Banking Compliance Regulations Meet International Standards Amid Global Shift towards Transparency and Confidentiality

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The Cook Islands has made significant strides in combating money laundering and financial crimes by implementing robust banking compliance regulations that meet international standards. This move aims to boost credibility and attract international business, while striking a balance between transparency and confidentiality.

Strengthened Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Framework

The Cook Islands has strengthened its AML/CFT framework through the enactment of the Financial Transactions Reporting Act 2017 and related legislation. This includes adopting FATCA and CRS, which enables the automatic sharing of financial information for tax purposes.

Tax Transparency and Compliance

The country’s commitment to tax transparency and compliance is evident in its membership of the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The Cook Islands has also passed laws to remove tax regimes deemed preferential and harmful by the European Union, earning it a reputation as a cooperative jurisdiction for tax purposes.

Confidentiality Preserved

Despite the growing global push for financial transparency, the Cook Islands has struck a balance between meeting its international obligations and protecting the confidentiality of individuals’ financial affairs. The country relies on investigative powers held by the Commissioner of the Financial Supervisory Commission and the Financial Intelligence Unit to obtain information only in accordance with legal provisions.

No Public Registers of Beneficial Ownership

Unlike some jurisdictions, the Cook Islands does not maintain public registers of beneficial ownership. Instead, it uses its investigative powers to ensure that financial transactions are legitimate and compliant with regulations.

Benefits of Compliance

The country’s approach to banking compliance regulations provides comfort to governments, institutions, businesses, and individuals globally when dealing with Cook Islands financial services. By meeting international standards while recognizing legitimate confidentiality, the Cook Islands has increased its credibility among international trade partners and financial institutions, making it a more attractive jurisdiction for investment and business.

Contact Us

For more information on compliance in the Cook Islands financial services industry, contact our team at Cook Islands Finance. We can assist you in navigating the complexities of banking compliance regulations and provide guidance on how to ensure your financial transactions are compliant with international standards.