Cook Islands Cracks Down on Terrorist Financing with Financial Intelligence Unit
The Cook Islands has taken a significant step in combating terrorist financing by strengthening its financial intelligence capabilities through the establishment of the Cook Islands Financial Intelligence Unit (CIFIU). As a specialized unit of the Financial Supervisory Commission, CIFIU is responsible for coordinating the implementation of the country’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime.
Mandate and Responsibilities
The CIFIU was established in 2002 as an independent entity of the Government of the Cook Islands. Its mandate, handed down by Cabinet in 2003, is to:
- Collect, analyze, and disseminate financial information and intelligence on suspected money laundering, terrorist financing activities, and other serious offenses
- Coordinate with relevant authorities within the Cook Islands and internationally
Regulatory Responsibilities
As stipulated by the Financial Transaction Reporting Act 2017, CIFIU regulates and conducts compliance examinations of all registered Reporting Institutions in the Cook Islands. These institutions include:
- Banks
- Financial service providers
- Trustees
- Insurance companies
- International companies
- Real estate agents
- Accountants
- Lawyers
- Motor vehicle dealers
- Money brokers
- Investment and portfolio advisors
- Gambling operators
- Pearl dealers
- Friendly societies
- Non-profit organizations
Dual Roles
The CIFIU’s dual roles of intelligence gathering and regulation are distinct but complementary. This allows the agency to effectively monitor and prevent the flow of funds to terrorist organizations.
International Cooperation
CIFIU works closely with approved organizations and countries to share financial information and coordinate efforts to combat terrorist financing.
Commitment to Financial Integrity
The Cook Islands’ efforts to strengthen its financial intelligence capabilities come at a critical time, as the country seeks to protect itself from the threat of terrorism and other financial crimes. With CIFIU at the forefront of these efforts, the Cook Islands is demonstrating its commitment to maintaining a robust financial system that is free from illicit activities.
By establishing the CIFIU, the Cook Islands is sending a strong message that it will not tolerate terrorist financing or other forms of financial crime. This demonstrates the country’s dedication to upholding international standards and best practices in financial regulation and intelligence gathering.