Cook Islands Financial Institutions Face Compliance Regulations Overhaul

The Cook Islands Financial Supervisory Commission (FSC) has been tasked with overseeing compliance regulations for financial institutions in the region to boost transparency and stability in its financial sector.

About the FSC

Established on July 1, 2003, the FSC replaced the Off-shore Financial Services Commission and merged with the Financial Intelligence Unit (FIU) on July 1, 2012. The commission’s vision is to be a leading financial regulator committed to excellence, integrity, and growth, while its mission is to ensure effective and efficient supervision of regulated entities through risk-based and intelligence-led policies.

Responsibilities

As an independent body, the FSC is responsible for supervising financial institutions, including:

• Banks
• Insurers
• Money-changing businesses
• Remittance companies
• Trustee firms

The commission also operates the Registry of International & Foreign Companies, Limited Liability Companies, International Trusts, International Partnerships, and Foundations.

Role of the FIU

The FIU, which merged with the FSC in 2012, plays a crucial role in:

• Preventing money laundering
• Detecting money laundering
• Investigating money laundering
• Prosecuting money laundering
• Preventing terrorism financing

The commission’s efforts are aimed at ensuring that financial institutions comply with international best practices and standards to maintain public trust.

Future of the Financial Sector

With its expanded scope and responsibilities, the FSC is poised to play a key role in shaping the future of the Cook Islands’ financial sector, promoting stability, and driving economic growth.