Financial Crime World

Cook Islands Financial Intelligence Units Step Up Efforts Against Money Laundering and Terrorism Financing

The Cook Islands Financial Supervisory Commission (FSC) has been working tirelessly to strengthen the country’s financial regulatory landscape, ensuring that it remains a safe haven for international finance.

Background

Established in 2003, the FSC replaced the former Offshore Financial Services Commission. In 2012, it merged with the Financial Intelligence Unit (FIU) to form a single entity. The FSC’s vision is clear: to be a financial regulator that is committed to excellence, integrity, and supportive of growth and development of the Cook Islands’ financial services centre.

Mission Statement

The commission has outlined its mission statement, focusing on:

  • Overseeing an effective and efficient prudential and investigative supervision regime
  • Applying risk-based and intelligence-led policies in line with internationally accepted best practice

Structure and Functionality

As an independent body responsible for supervising regulated financial entities and financial services in the Cook Islands, the FSC comprises a team of experts, including:

  • The Board
  • Commissioner
  • Head of the FIU
  • Supervisory staff
  • Registrar of International Companies and International Trusts

The commission is also the licensing authority for all financial institutions, including:

  • Banks
  • Insurers (including captives)
  • Money-changing and remittance businesses
  • Trustee companies

Registry Operations

The FSC operates the Registry of International & Foreign Companies, Limited Liability Companies, International Trusts, International Partnerships, and Foundations, providing a robust framework for international business operations.

Financial Intelligence Unit (FIU)

The FIU plays a critical role in facilitating:

  • Prevention of money laundering
  • Detection of terrorism financing
  • Investigation and prosecution of serious offences in the Cook Islands

With its expertise and resources, the FIU works closely with domestic authorities and international partners to ensure that financial transactions are:

  • Transparent
  • Accountable
  • Free from illicit activities

Conclusion

In summary, the Financial Supervisory Commission (FSC) and the Financial Intelligence Unit (FIU) of the Cook Islands are working in tandem to create a robust regulatory environment that promotes financial stability, integrity, and growth. By doing so, they aim to protect the country’s reputation as a responsible international financial centre while ensuring that its financial services sector remains competitive and attractive to investors.