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 economy of the Cook Islands is predominantly driven by tourism, which accounts for approximately 67.5% of its GDP, alongside offshore banking and marine exports. The country is also working to develop its agriculture and fishing sectors, while heavily relying on foreign aid, particularly from New Zealand, and facing challenges related to its geographic isolation and limited resources.

The investment climate in the Cook Islands is favorable for foreign investors, particularly due to regulations surrounding asset protection trusts, which have drawn international interest. However, the economy's heavy reliance on tourism and foreign aid introduces vulnerabilities that potential investors should be aware of, especially considering the sensitivity to external shocks such as natural disasters and global market fluctuations.