Cook Islands Tightens Grip on Anti-Money Laundering Regulations with Financial Supervisory Commission

The Cook Islands has taken significant steps to strengthen its financial regulatory framework by revamping its anti-money laundering (AML) regulations. In 2003, the Financial Supervisory Commission (FSC) was established, replacing the Off-shore Financial Services Commission and merging with the Financial Intelligence Unit (FIU) in 2012.

Mission and Vision

The FSC’s vision is to be a financial regulator that embodies excellence, integrity, and supports the growth and development of the Cook Islands’ financial services sector. Its mission statement emphasizes the need for an effective and efficient prudential and investigative supervision regime, applying risk-based and intelligence-led policies in line with internationally accepted best practices.

Responsibilities

As an independent body, the FSC is responsible for:

• Supervising regulated financial entities and financial services in the Cook Islands
• Comprising a board, commissioner, head of FIU, staff, supervisory personnel, and registrar of international companies and trusts
• Licensing authority for banks, insurers, money-changing and remittance businesses, and trustee companies

Operational Structure

The FSC operates the Registry of International & Foreign Companies, Limited Liability Companies, International Trusts, International Partnerships, and Foundations, providing a one-stop-shop for financial transactions in the Cook Islands.

Financial Intelligence Unit (FIU)

The FIU plays a critical role in facilitating:

• Prevention, detection, investigation, and prosecution of money laundering, terrorism financing, and other serious offenses in the country
• Ensuring that the Cook Islands’ financial sector remains a safe and secure haven for investors while maintaining its reputation as a responsible player in the global financial landscape

Conclusion

The Cook Islands’ efforts to strengthen its AML regulations demonstrate its commitment to maintaining a robust financial regulatory framework. The FSC’s mission and vision are aligned with internationally accepted best practices, ensuring that the country remains a secure and attractive destination for investors.