5.1 moving towards excellence (cook islands)
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Transcript of 5.1 moving towards excellence (cook islands)
Moving Towards EXCELLENCE with FATF’s 40+9…
THE COOK ISLANDS STORY
Financial Supervisory CommissionCook Islands
The Story Teller:
Louise WittwerManager - Offshore ServicesFinancial Supervisory CommissionRarotongaCook Islands
Financial Supervisory CommissionCook Islands
Setting the Scene:“Cook Islands have emerged as a leader in the fight against money
laundering and terrorism financing within the region.”
Dr Gordon HookExecutive Secretary
Asia/Pacific Group on Money LaunderingJuly 2009
Financial Supervisory CommissionCook Islands
Financial Supervisory CommissionCook Islands
Setting the scene a little better … Lou’s back yard
Where are the Cook Islands?
Financial Supervisory CommissionCook Islands
• At the centre of the Polynesian Triangle• Western neighbours – Tokelau, Western + American Samoa, Niue• Eastern neighbour – Tahiti• Lies in the Tropic of Capricorn
RAROTONGA
Financial Supervisory CommissionCook Islands
• Vibrant capital of the Cook Islands• 1 of 15 islands scattered over 2 million square kilometres• Home to 12,000 people• Circular island, 32k in circumference• Mountain peaks backdrop to palm fringed shores of turquoise lagoon
Quiz Time:
1. What is the most popular mode of transport in the Cooks?
A. TrainB. HelicopterC. Scooter
Financial Supervisory CommissionCook Islands
Quiz Time:
2. What do Cook Islanders eat with?
A. A knife and forkB. ChopsticksC. Their hands
Financial Supervisory CommissionCook Islands
Quiz Time:
3. The majority of animals in Rarotonga are:
A. MonkeysB. PigsC. Cats
Financial Supervisory CommissionCook Islands
Quiz Time:
4. The Cook Islands $2 coin is this shape:
A. SquareB. TriangleC. Circle
Financial Supervisory CommissionCook Islands
Quiz Time:
5. The Cook Islands are in the same time zone as:
A. HawaiiB. AntarcticaC. New Zealand
Financial Supervisory CommissionCook Islands
Quiz Answers:
1. C - Scooter2. C - Hands3. B - Pigs4. B - Triangle5. A - Hawaii
Financial Supervisory CommissionCook Islands
Setting the Scene:“Cook Islands have emerged as a leader in the fight against money
laundering and terrorism financing within the region.”
Dr Gordon HookExecutive Secretary
Asia/Pacific Group on Money LaunderingJuly 2009
Financial Supervisory CommissionCook Islands
Asia/Pacific Group on Money Laundering (APG) – 5 key roles:
1. Robust Mutual Evaluation Programme2. Technical Assistance + Training3. International AML Network4. Research + Analysis5. Active Associate Member of FATF
Financial Supervisory CommissionCook Islands
APG:• Largest ‘FATF Style’ Regional Body• 40 Active Member Countries• 9 Members who are FATF members:
1. Australia 6. Korea2. Canada 7. New Zealand3. China 8. Singapore4. Hong Kong 9. United States5. Japan
Financial Supervisory CommissionCook Islands
The Cook Islands …
• Member of APG since 2001• AML Mutual Evaluation in Feb 2009• MER released in July 2009
Very pleasing results …
Financial Supervisory CommissionCook Islands
Key Result:
Cook Islands is the only jurisdiction (in APG) that has NO NON COMPLIANT ratings
against FATF’s40 AML Recommendations
and9 Special Recommendations
(Against Terrorism Financing)
Financial Supervisory CommissionCook Islands
Overall Result:
Financial Supervisory CommissionCook Islands
Rating Number Percent
Compliant 4 8%
Largely Compliant 25 51%
Partially Compliant 19 39%
Non Compliant 0 0%
Not Applicable 1 2%
TOTAL 49 100%
In summary, 60% C or LC and 40% PC.
Detailed Results:
Financial Supervisory CommissionCook Islands
RatingLegal
SystemsPreventive Measures
Institutional + Other
Measures
International Co-operation
9 Special Recomm. TOTAL
C 3 1 4
LC 2 9 4 6 4 25
PC 1 9 5 4 19
NC 0
NA 1 1
TOTAL 3 22 9 6 9 49
Comparative Results:
Financial Supervisory CommissionCook Islands
Rating COOKISLANDS
Canada Hong Kong
New Zealand
Samoa UnitedStates
Vanuatu
C 4 7 10 8 1 15 3
LC 25 23 20 17 4 28 8
PC 19 8 15 6 30 2 26
NC 11 4 18 14 4 12
N/A 1 0 0 0 0 0 0
TOTAL 49 49 49 49 49 49 49
So, how did we get there?
Financial Supervisory CommissionCook Islands
Essentially with,‘Political + Jurisdictional WILL’
to be removed from FATF’s BLACKLIST
(June 2000 to February 2005)
Financial Supervisory CommissionCook Islands
National effort forimmense changeincluding …
• Legislative Change• Active involvement of Govt and Crown Agencies• Supervisory and Regulatory Change• Other Fundamental Changes
Financial Supervisory CommissionCook Islands
Legislative ChangeSuite of AML legislation …
1. Money Laundering Prevention Act 20002. Banking Act 20033. Crimes Amendment Act 20034. Extradition Act 20035. Financial Supervisory Commission Act 20036. Mutual Assistance in Criminal Matters Act 20037. Proceeds of Crimes Act 20038. Financial Transactions Reporting Act 20049. Narcotics and Misuse of Drugs Act 200410. Terrorism Suppression Act 2004
Financial Supervisory CommissionCook Islands
Active involvement ofGovernment and Agencies …
1. Financial Intelligence Unit (Intel & Compliance)2. Financial Supervisory Commission (Regulation &
Compliance)3. Cook Islands Police (Investigation & Prosecution)4. Customs (Movement of People & Goods)5. Crown Law (Prosecution)
Along with Audit, Immigration, Justice, Foreign Affairs.
Financial Supervisory CommissionCook Islands
Financial Supervisory CommissionCook Islands
Supervisory & Regulatory ChangeA few examples …
1. Relicensing of all banks (domestic & international) by FSC
2. Annual on-site examinations of all financial institutions (including trustee companies)
3. Introduction of FIU’s reporting regime (STR, CTR, EFTR)
4. Review of DNFBP’s (lawyers, accts, pearl dealers, mv dealers, real estate agents)
Financial Supervisory CommissionCook Islands
Other Fundamental ChangesA few more examples …
1. Establishment of the Co-ordinating Committee against Money Laundering & Terrorist Financing (CCAM)
2. Getting the Offshore Industry ‘on board’ with the Regulators
3. Active participation in AML forums (APG, Egmont)4. Sector Capacity Development (T & TA)5. Awareness Programmes for DNFBP’s
Financial Supervisory CommissionCook Islands
By February 2004 the 2nd Cook Islands Evaluation Team observed:
“Overall, the current AMLlegal, institutional, and supervisory
framework provides a sound basis for the prevention, detection, and prosecution of ML offences, but implementation remains
weak and FT is not addressed.”
Financial Supervisory CommissionCook Islands
3rd time round – Preparing for CI 2009 Mutual Evaluation
1. Started planning early, after APG 2007 Plenary2. Outsourced preparation of ‘National Risk
Assessment’ 3. Heads of all key agencies – FIU, FSC, CLO and
Police attended APG training workshop4. FIU dedicated resources to the ME5. Comprehensive completion of ME questionnaire
Financial Supervisory CommissionCook Islands
3rd MER Positive BUT…
Still contained 112 !!! recommendations
POCA, FTRA, Offshore, Insurance& DNFBP sectors…
Financial Supervisory CommissionCook Islands
So, where are we going?
Financial Supervisory CommissionCook Islands
Financial Supervisory CommissionCook Islands
Addressing 112 recommendations with consensus that we must …
• Complete National Implementation Plan (Risk-based-approach to implementation and allocating scarce resources).
• Maintain co-operation between parties
• Aim for nil PC, and a significant move from LC to C, for our 4th ME.
Financial Supervisory CommissionCook Islands
AND we’ve already started…
1. Revocation of two Offshore Bank Licences.2. Implementation of the Insurance Act 2008.3. Money Changers and Remitters Act passed
in 2009.4. Steps underway to abolish the Offshore
Banking Sector.5. Strategic Implementation Plan workshop
held late March.
Financial Supervisory CommissionCook Islands
Meitaki Maata
Financial Supervisory CommissionCook Islands
Lou’s front yard …
Financial Supervisory CommissionCook Islands