Cook Islands Prioritizes Compliance in Finance Sector

The Cook Islands government has taken decisive action to strengthen its financial sector by prioritizing compliance with international standards, addressing money laundering, tax evasion, and financial crimes.

Implementing Global Requirements

To achieve this goal, the country has implemented laws and regulations aligned with global requirements, including:

• Integrating FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) into its legal framework for automatic financial information sharing.
• Strengthening its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime with the Financial Transactions Reporting Act 2017, ensuring compliance with FATF recommendations.

Eliminating Preferential Tax Regimes

By joining the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS), the Cook Islands has eliminated preferential tax regimes, solidifying its reputation as a cooperative tax jurisdiction.

Balancing International Obligations and Confidentiality

While meeting international obligations is crucial, striking a balance between this and safeguarding confidentiality for legitimate businesses is equally important. The Cook Islands:

• Maintains investigative powers while adhering strictly to legal provisions.
• Deters fishing expeditions by ensuring personal information remains protected.

This approach has enhanced the country’s credibility globally, reassuring governments, institutions, businesses, and individuals.

Strengthened Jurisdictional Appeal

The government’s efforts have strengthened the Cook Islands’ appeal for international trade and financial transactions, promoting transparency and compliance while preserving privacy. The country is now seen as a reliable partner in the finance sector, with its commitment to meeting global standards and maintaining confidentiality.

Conclusion

With this approach, the Cook Islands is well-positioned to navigate the complex landscape of finance regulations and ensure long-term growth and development. Its reputation as a cooperative tax jurisdiction and commitment to meeting global standards make it an attractive destination for international trade and financial transactions.