Financial Crime World

Cook Islands Vows to Combat Money Laundering and Corruption

The Cook Islands government has reaffirmed its commitment to combating money laundering and corruption, recognizing the significant risks these interlinked threats pose to the island nation’s economy and people.

Established Frameworks and Initiatives

The Cook Islands has made notable progress in establishing a robust anti-money laundering (AML) framework. Key legislation includes:

  • Financial Transactions Reporting Act 2017 (FTR): aims to prevent and investigate money laundering, as well as confiscate assets obtained through illicit activities.
  • Proceeds of Crime Act 2003: focuses on confiscating assets obtained through illicit activities.
  • Mutual Assistance in Criminal Matters Act 2003: enables international cooperation in combating money laundering.

Global and Regional Response

The Cook Islands has joined various international initiatives to combat money laundering and corruption, including:

  • Financial Action Task Force (FATF): shares intelligence, best practices, and expertise with other nations.
  • Egmont Group: enables the country to share intelligence and best practices with other nations.
  • United Nations Convention on Corruption (UNCAC): focuses on preventing and combating corruption.

Institutional Frameworks and Financial Intelligence Units

Several agencies in the Cook Islands work together to monitor and enforce AML regulations:

  1. Cook Islands National Intelligence Taskforce: shares intelligence among law enforcement agencies.
  2. Financial Intelligence Unit (FIU): collects and analyzes financial data to identify suspicious transactions.

Recommendations for Action

To further strengthen its AML framework, the Cook Islands government is advised to:

  1. Review customer due diligence requirements to align with FATF recommendations.
  2. Enhance confiscation practices by expanding provisions beyond conviction-based confiscation.
  3. Ensure the FIU has adequate resources and training to analyze corruption-related financial information.

Commitment to Collaboration

The Cook Islands government recognizes the importance of collaboration among stakeholders, including legislatures, supervisory bodies, law enforcement, and the private sector. By working together, the country can better address the complex issue of money laundering and corruption.

By following these recommendations, the Cook Islands government is taking a significant step towards strengthening its financial integrity and protecting its economy and people from the threats of money laundering and corruption.