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Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Cook Islands is not a regional financial center and has no
free trade zones. The Cook Islands substantial offshore financial
sector is an important part of the country’s economy, but also
represents its most significant vulnerability to money laundering
and terrorist financing activities. The Government of the Cook
Islands (GOCI) has taken steps to reduce the risks presented by
both the offshore sector and its small domestic financial sector.
The GOCI has significantly enhanced supervision of both sectors
in the past three years, including the performance of annual on-
site examinations of all domestic and offshore financial institutions.
The large offshore financial sector developed from legislation
enacted in the early 1980s, which allowed the operation of
international companies and trusts, including offshore banks and
insurance companies. All offshore business conducted from the
Cook Islands must be channeled through registered trustee
companies. Currently there are six registered trustee companies
and four international banks. One of the domestic banks also has
an international license. The industry provides a wide range of
trustee and corporate services to offshore investors with a tax
rate for all offshore entities of zero, guaranteeing tax neutrality.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: banks (domestic and offshore), offshore
insurers and trustee companies
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: banks (domestic and offshore), offshore
insurers and trustee companies
Number of STRs received and time frame: 58
Number of CTRs received and time frame: 1,845
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
The Cook Islands is a member of the Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Cook%20Islands%
20MER-%20final%20140809.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Cook Islands has a generally well-supervised financial
industry. Large cash transactions involving locally generated
funds are immediately apparent, and suspicious transactions are
reported to the CIFIU for further review. The proceeds of domestic
crime are generally small. There is evidence of concealment
stemming from drug and misappropriation cases, with total
proceeds that are significant relative to the size of the economy.
The Cook Islands tightened its legislation and regulations to more
closely reflect international standards. GOCI officials note that the
remaining money laundering and terrorist financing risks stem
from the lower Know Your Customer (KYC) standards and the
provision of false information to Cook Islands financial institutions
by businesses and customers in other jurisdictions, particularly in
Asia.
The Cook Islands should become party to the UN Convention
against Corruption, and ensure that the UN lists of designated
terrorists or terrorist entities are distributed to financial institutions
regularly.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML / News Updates
September 20, 2010 - Cook Islands uplifted to OECD
implementation of tax standard white list.
View current list.......
Links:
Worldwide AML Legislation (International Bar Association)
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Cook Islands is not a regional financial center and has no
free trade zones. The Cook Islands substantial offshore financial
sector is an important part of the country’s economy, but also
represents its most significant vulnerability to money laundering
and terrorist financing activities. The Government of the Cook
Islands (GOCI) has taken steps to reduce the risks presented by
both the offshore sector and its small domestic financial sector.
The GOCI has significantly enhanced supervision of both sectors
in the past three years, including the performance of annual on-
site examinations of all domestic and offshore financial institutions.
The large offshore financial sector developed from legislation
enacted in the early 1980s, which allowed the operation of
international companies and trusts, including offshore banks and
insurance companies. All offshore business conducted from the
Cook Islands must be channeled through registered trustee
companies. Currently there are six registered trustee companies
and four international banks. One of the domestic banks also has
an international license. The industry provides a wide range of
trustee and corporate services to offshore investors with a tax
rate for all offshore entities of zero, guaranteeing tax neutrality.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: banks (domestic and offshore), offshore
insurers and trustee companies
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: banks (domestic and offshore), offshore
insurers and trustee companies
Number of STRs received and time frame: 58
Number of CTRs received and time frame: 1,845
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
The Cook Islands is a member of the Asia/Pacific Group on Money
Laundering (APG), a Financial Action Task Force (FATF)-style
regional body. Its most recent mutual evaluation can be found
here: http://www.apgml.org/documents/docs/17/Cook%20Islands%
20MER-%20final%20140809.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Cook Islands has a generally well-supervised financial
industry. Large cash transactions involving locally generated
funds are immediately apparent, and suspicious transactions are
reported to the CIFIU for further review. The proceeds of domestic
crime are generally small. There is evidence of concealment
stemming from drug and misappropriation cases, with total
proceeds that are significant relative to the size of the economy.
The Cook Islands tightened its legislation and regulations to more
closely reflect international standards. GOCI officials note that the
remaining money laundering and terrorist financing risks stem
from the lower Know Your Customer (KYC) standards and the
provision of false information to Cook Islands financial institutions
by businesses and customers in other jurisdictions, particularly in
Asia.
The Cook Islands should become party to the UN Convention
against Corruption, and ensure that the UN lists of designated
terrorists or terrorist entities are distributed to financial institutions
regularly.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML / News Updates
September 20, 2010 - Cook Islands uplifted to OECD
implementation of tax standard white list.
View current list.......
Links:
Worldwide AML Legislation (International Bar Association)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| COOK ISLANDS |
| KnowYourCountry |
|
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| Last Updated: 16 April 2012 |