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 has a tourism-based economy that accounts for approximately 67.5% of its GDP, supported by foreign aid, particularly from New Zealand. While the economy is diversifying into agriculture, fishing, and offshore banking, it faces challenges due to geographic isolation and limited natural resources.

The investment climate in the Cook Islands is generally favorable, supported by its self-governing status and free association with New Zealand. The government has established a legal framework that encourages foreign investments, particularly in tourism and financial services, while the country's unique asset protection laws attract investors looking to safeguard their assets. However, potential investors should consider challenges such as limited infrastructure and vulnerability to natural disasters.