The new rules incorporate Guidance Notes for Financial Institutions based on models from New Zealand, Japan and Guernsey. Issues covered in the Notes include 'know your customer' rules; recognising suspicious customers/transactions; reporting of suspicion transactions; keeping of records and training.

Financial institutions on the Cook Islands have also been provided with a summary of the relevant law and an example of a suspicious transaction report. The government says that the response from the financial institutions has been positive and a number of financial institutions have confirmed that they will incorporate the Guidance Notes as part of their corporate policies and procedures manuals.

In addition, a Financial Intelligence Unit will be established within the Office of the Commissioner for Offshore Financial Services and the New Zealand government has provided a technical adviser to the Cook Islands to assist in the set up and implementation of an appropriate data-base system and to train local staff in its use.

The Government's description of its Cook Islands Money Laundering Prevention Act 2000 is available in Tax-News Resources.