Financial Crime World

Financing Compliance in the Cook Islands: A Closer Look at the Financial Supervisory Commission (FSC)

The tropical paradise of the Cook Islands has established itself as a hub for international finance, drawing in numerous financial institutions and investors in search of opulent tax benefits and financial freedom. Among this bustling industry stands the Financial Supervisory Commission (FSC), an independent body dedicated to maintaining the integrity and stability of the Cook Islands’ financial sector.

Overview of the Financial Supervisory Commission (FSC)

The FSC, founded in 2003, has played a pivotal role in regulating and supervising financial entities and services within the Cook Islands. Its jurisdiction includes the licensing authority for:

  • Banks
  • Insurers
  • Money-changing and remittance businesses
  • Trustee companies

The FSC also manages:

  • The Registry of International & Foreign Companies
  • Limited Liability Companies
  • International Trusts
  • International Partnerships
  • Foundations

Moreover, the Financial Intelligence Unit (FIU) function was integrated with the FSC in 2012 to combat money laundering, terrorism financing, and other serious offenses in the Cook Islands.

The role of the FSC in the Cook Islands

Regulating Financial Entities

  • Banks: The FSC is responsible for the licensing, supervision, and regulation of banks and banking services in the Cook Islands. More Information
  • Insurers: The FSC oversees the licensing, supervision, and regulation of insurers and insurance services in the Cook Islands. More Information
  • Money-Changing & Remittance: The FSC regulates and supervises money-changing and remittance businesses in the Cook Islands. More Information
  • Trustee Companies: The FSC licenses, supervises, and regulates trustee companies and related services in the Cook Islands. More Information

Facilitating Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts

  • The FIU, integrated into the FSC in 2012, aims to:
    • Prevent
    • Detect
    • Investigate
    • Prosecute
    • Deter money laundering, terrorism financing, and other serious offenses in the Cook Islands

Legislation & Regulations

The FSC functions under the following legislations and regulations:

  • Financial Institutions Act 2004 (as revised in 2011)
  • Money Transfer Businesses Regulations 2006
  • International Trusts Act 1984 (as revised in 2001)
  • International Companies Act 1981 (as revised in 2004)
  • Limited Liability Companies Act 2001
  • Foundations Act 2006

More Information

Mission and Impact

The FSC is dedicated to operational efficiency, risk-based, and intelligence-led policies to ensure the financial integrity and foster growth and development within the Cook Islands. Its commitment to excellence and vigilance in the international finance arena is unrivaled.