Global Efforts to Combat Terrorist Financing

In the aftermath of the September 11 attacks, the global community has come together to combat the financing of terrorist activities. In October 2001, the G-7 Finance Ministers and Central Bank Governors released an action plan to counteract the funding of terrorism.

The Financial Action Task Force (FATF)

The FATF subsequently issued Special Recommendations on Terrorist Financing, which outlined measures for countries to implement in order to prevent the financing of terrorist activities. These recommendations aim to disrupt and dismantle the financial networks that support terrorist organizations.

The Cook Islands’ Commitment

The Cook Islands is committed to working with its international partners to combat terrorism and stamp out terrorist activities worldwide. To achieve this goal, the country has implemented various measures to prevent money laundering and the financing of terrorism.

Domestic Legislation

In 2003, the Cook Islands criminalized money laundering under the Crimes Amendment Act, while the Proceeds of Crime Act gave law enforcement agencies the power to search, seize, and restrain property believed to be the proceeds of crime. The Financial Transactions Reporting Act (FTRA) was also enacted in 2004, which introduced a regime for reporting suspicious transactions.

The Cook Islands Financial Intelligence Unit (FIU)

The FIU is established under section 20 of the FTRA and has been operational since 2004. The primary functions of the FIU include:

• Receiving reports from financial institutions and analyzing suspicious transactions
• Requesting information from law enforcement agencies and supervisory authorities
• Referring matters to the Police for investigation if there are reasonable grounds to suspect a serious offense, money laundering, or terrorist financing
• Providing intelligence and information to domestic authorities within the Cook Islands

Key Functions of the FIU

The FIU has several key functions, including:

• Receiving reports from financial institutions and analyzing suspicious transactions
• Requesting information from law enforcement agencies and supervisory authorities
• Referring matters to the Police for investigation if there are reasonable grounds to suspect a serious offense, money laundering, or terrorist financing
• Providing intelligence and information to domestic authorities within the Cook Islands
• Compiling statistics and records, disseminating financial information, and providing intelligence to other countries

By implementing these measures, the Cook Islands is taking concrete steps to combat the financing of terrorism and prevent the flow of funds to terrorist organizations. The country’s commitment to international cooperation and best practices in anti-money laundering and counter-terrorism financing will help to safeguard its financial system and prevent the misuse of its financial institutions for illegal activities.