Cook Islands Tightens Grip on Banking Regulations with Array of Enactments and Amendments

The Financial Supervisory Commission (FSC) in the Cook Islands has been actively implementing a range of enactments and amendments to regulate the country’s banking sector in recent years.

Regulatory Framework

Established under the Financial Supervisory Commission Act 2003, the FSC is responsible for ensuring that banks operating in the Cook Islands comply with strict regulations. The Banking Act 2011 sets out the framework for banking operations in the country and has undergone several amendments to improve its effectiveness and adapt to changing market conditions.

Key Regulations

• Banking (Fees) (Amendment) Regulations 2014: Introduced new fee structures for banks operating in the country, aimed at ensuring that fees charged by banks are fair and reasonable.
• Insurance Act 2008 and subsequent amendments: Established a comprehensive framework for insurance operations in the country.
• Money-Changing and Remittance Businesses Act 2009: Regulated the activities of money-changers and remittance businesses.

Promoting Transparency and Accountability

The FSC has also taken steps to promote transparency and accountability within the financial sector, including:

• Commission’s (Qualifications of Compliance Officer) Regulations 2004: Require compliance officers at banks operating in the Cook Islands to possess specific qualifications and experience.

Challenges and Future Developments

Despite these efforts, there are concerns that some aspects of the country’s banking regulations may be outdated or inadequate. The FSC is working to address these issues through ongoing consultations with industry stakeholders and revisions to existing laws and regulations.

In a statement, the Parliamentary Services Clerk said:

“While every effort is made to ensure that this legislation is up-to-date, due to small changes frequently being made, no guarantee can be given about its current status. All enquiries as to statutes, regulations and other statutory instruments should be directed to our office.”

The Cook Islands’ banking sector has faced challenges in recent years, including a decline in economic growth and a rise in non-performing loans. The implementation of new regulations is aimed at improving the stability and resilience of the financial system, while also promoting confidence among consumers and investors.

Contact Information

Parliamentary Services Clerk PO Box 13 Nikao Rarotonga Cook Islands

Phone: (682) 26500 Fax: (682) 21260 Email: sarah.takairangi@cookislands.gov.ck