Financial Crime World

National Risk Assessment (NRA) Methodology for Cook Islands

Introduction

This report provides an overview of the methodology used in conducting a national risk assessment for the Cook Islands. The approach taken is designed to identify Money Laundering, Terrorist Financing, and Proliferation Financing (ML/TF/FOP) risks in the country.

Focused Approach

The report focuses on the primary threats to the Cook Islands and identifies sectors that are at high risk of being exploited by these threats. This approach allows for a more targeted analysis of the ML/TF/FOP risks in the country.

Data Collection

A comprehensive data collection process was undertaken, including:

  • Review of Previous NRAs: Analysis of previous national risk assessments conducted in 2008 and 2015.
  • Analysis of Government Agency Information: Review of information from key government agencies to identify ML/TF/FOP risks.
  • Private Sector Stakeholder Input: Analysis of information from private sector stakeholders, including banking and TCSP industries.
  • Expert Discussions: Discussions with Financial Supervisory Commission (FSC), Financial Intelligence Unit (FIU), and senior management in the banking and TCSP industries.

Sources Used

The report draws on a range of sources, including:

  • Previous Cook Islands NRAs: Previous national risk assessments conducted for the Cook Islands.
  • Expert Knowledge: The knowledge and experience of those within FSC and FIU.
  • Senior Management Insights: Views from senior management in the banking and TCSP industries.
  • Community Input: Feedback from other community members with deep knowledge and experience of the Cook Islands’ economy, business, and trade operations.

International Guidance

The approach taken by other countries in producing national risk assessments was considered, as well as NRA models developed by the World Bank and International Monetary Fund. This ensured that the methodology used in this report is consistent with international best practices.

Note

Please note that this report is not a comprehensive national risk assessment but rather a focused report on the primary ML/TF/FOP threats to the Cook Islands and high-risk sectors.