Improving Finance Sector Know Your Customer Capacity in Cook Islands

The Cook Islands is set to benefit from a technical assistance program aimed at enhancing the finance sector’s “know your customer” (KYC) processes. The initiative, funded by the Asian Development Bank (ADB), aims to improve compliance with international anti-money laundering and counter financing of terrorism (AML/CFT) requirements.

Project Objectives

The project has three key objectives:

• Improve compliance with international AML/CFT requirements
• Reduce the likelihood of financial institutions losing bank accounts due to non-compliance
• Bring costs of remittances in Pacific DMCs closer to global averages

Key Areas of Focus

The project will focus on three key areas:

Improving Identity Verification Databases

The project aims to improve the accuracy and completeness of identity verification databases used by financial institutions.

Implementing a Technology Platform for KYC Facilities

A technology-based platform will be developed to facilitate standardization of workflows, risk assessments, and consistent information sharing between partner financial institutions and regulators.

Supporting Legal and Regulatory Reforms

The project will support legal and regulatory reforms in the Cook Islands to ensure alignment with international AML/CFT standards.

Participating Countries

The “Improving Finance Sector Know Your Customer Capacity in the Pacific” project involves nine participating countries, including:

• Cook Islands
• Papua New Guinea
• Samoa
• Solomon Islands
• Vanuatu
• Fiji
• Micronesia
• Federated States of Kiribati
• Marshall Islands

Project Timeline and Funding

The project is expected to be completed by December 2028, with the ADB providing a total funding of $2 million.