Cook Islands Country Summary

FATF Status

The Cook Islands is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation follow-up Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cook Islands was undertaken in 2018. According to that Evaluation, Cook Islands was deemed Compliant for 5 and Largely Compliant for 33 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness & Technical Compliance ratings.

The Cook Islands experiences relatively low levels of crime and corruption, contributing to a sense of safety and stability within the community. The resilience to crime is bolstered by effective local governance and a strong emphasis on community engagement, which fosters trust and cooperation among residents.

The economy of the Cook Islands is heavily reliant on tourism, which constitutes about 67.5% of its GDP, alongside contributions from fishing, agriculture, and offshore banking, with significant foreign aid from New Zealand. Despite challenges posed by geographic isolation and limited resources that impact infrastructure and manufacturing, the economy has demonstrated resilience and is making strides toward diversification, particularly in agriculture and mining. The investment climate is favorable, bolstered by a legal framework that protects assets, attracting foreign investors, particularly in tourism and agriculture, while the government actively promotes a stable environment for investment.