Cook Islands Cracks Down on Financial Crime, Embracing Global Standards
The Cook Islands government has prioritized ensuring compliance with international standards in the fight against money laundering, tax evasion, and financial crimes. To achieve this goal, the country has implemented laws and regulations aligned with global requirements.
Integration of FATCA and CRS
One key measure taken by the Cook Islands is its integration of FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) into its legal framework for automatic financial information sharing. This enables the country to share financial information with other jurisdictions in a timely and efficient manner.
Strengthening Anti-Money Laundering/Countering the Financing of Terrorism Regime
The Cook Islands has also bolstered its Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime with the Financial Transactions Reporting Act 2017. This ensures compliance with FATF (Financial Action Task Force) recommendations and maintains a strong stance against financial crimes.
Cooperative Approach to Tax Issues
The Cook Islands has taken a cooperative approach to tax issues by joining the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This move has earned it recognition as a cooperative tax jurisdiction, demonstrating its commitment to transparency and cooperation with other countries.
Balancing International Obligations with Confidentiality
While balancing international obligations with the need to safeguard confidentiality for legitimate businesses is crucial, the Cook Islands ensures that personal information remains protected. At the same time, it provides investigative powers to maintain transparency and combat financial crimes.
No Public Registers for Beneficial Ownership
Another key aspect of the Cook Islands’ approach is its maintenance of no public registers for beneficial ownership. While this may raise some concerns, the country’s strict adherence to legal provisions when sharing information deters fishing expeditions and maintains a level of confidentiality.
Enhanced Credibility and Attractive Destination
This approach has enhanced the Cook Islands’ credibility globally, reassuring governments, institutions, businesses, and individuals that it is a trustworthy jurisdiction. The country’s commitment to transparency and compliance while preserving privacy has also made it an attractive destination for international trade and financial transactions.
Contact Information
For more information on the Cook Islands’ financial regulations, please contact us at:
- P.O. Box 3255, Clarkes Building, Parekura, Rarotonga, Cook Islands
- Email: enquiry@fsda.gov.ck
- Phone: +682 21-175
Office hours are Monday to Friday from 8am to 4pm and Saturday and Sunday are closed.