Financial Crime World

Cook Islands’ Anti-Terrorist Financing Measures Under Scrutiny

The efforts of the Cook Islands to combat terrorist financing have been praised by international authorities, despite some minor technical deficiencies.

Overview of the APG Report

A recent report by the Asia-Pacific Group on Money Laundering (APG) has evaluated the Cook Islands’ anti-terrorist financing measures. The report highlights that while the country has implemented an appropriate framework to identify persons and entities designated under relevant United Nations Security Council resolutions, there are areas where improvement is needed.

Technical Deficiencies

The APG report notes that:

  • There may be some challenges in identifying high-risk individuals or entities
  • Moderate deficiencies exist in the Cook Islands’ legal framework related to the financing of weapons of mass destruction proliferation
  • Vulnerabilities exist in the country’s shipping registry, which could be exploited by terrorist organizations
  • Better supervision and enforcement of anti-money laundering and counter-terrorist financing (AML/CFT) measures are needed

Progress Made

Despite these deficiencies, the APG report commends the Cook Islands for:

  • Having a sound legal and regulatory framework for preventive measures
  • Issuing warning letters and requiring businesses to prepare action plans
  • Applying notable and dissuasive sanctions in some cases, including the cancellation of insurance business licenses

Action Plan Unveiled

In response to the APG report, the Cook Islands government has unveiled a new Action Plan aimed at strengthening its anti-terrorist financing measures. The plan includes:

  • Improving surveillance
  • Enhancing enforcement and international cooperation
  • Establishing a dedicated unit within the Financial Intelligence Unit (FIU) to focus on terrorist financing issues
  • Increasing cooperation with other countries and organizations to share intelligence and best practices

Implementation Timeline

The Cook Islands government has committed to implementing the Action Plan by 2023, with regular reviews and assessments to ensure progress is being made.

By addressing these deficiencies and implementing the Action Plan, the Cook Islands can further strengthen its anti-terrorist financing measures and improve transparency.