Cook Islands PM Lends Support To Niue Over OECD And FATF Initiatives
Tax-news.com reported
last week the US had imposed sanctions on banking in the tiny
Pacific island of Niue, the US Department of State citing the
country's links to Latin American tax haven operations. In fact,
it's been a bad start to the year all round for Niue. Following
the body blow from the US, the Financial Action Task Force (FATF)
last week said it was keeping all the 15 countries named as money
laundering hotspots on its blacklist, and moreover that Niue was
amongst the "laggards" of the 15 in improving its anti-money
laundering controls. Niue has responded by vowing to tighten up
its laws. Niue says it is committed
to meeting international requirements to tighten its regulatory
regime to guard against money laundering, but is struggling to
do so given its limited legal resources. The island's deputy premier,Young
Vivian, pointed out last week that Niue's human resources are
very limited but that it is in the island's own interests to satisfy
the requirements of the international community. Niue has asked
New Zealand to assist where necessary. Niue was also blacklisted
last year by the OECD for its supposed "harmful" tax
practices. However, the Cook Islands has backed poor Niue, and
last week at a meeting of Pacific island leaders the Cook Islands
Prime Minister, Dr Terepai Maoate, openly criticized the OECD
for clamping down on the small offshore financial centres of the
Pacific. With regards to the
US imposition of sanctions on Niue, which will prevent fees from
Panama law firm Mossack Fonseca & Co reaching the tiny island,
Dr Maoate voiced his concern and said he was right behind Niue
'which was understandably distraught their financial centre was
being ripped apart by the big boys....' For his part, Niue's
Prime Minister, Sani Lakatani, said he was grateful for the support
of the Cook Islands. He described the news of the US bank sanctions
as a blow to his country because 'while the amounts involved may
be small to the outside world, $50,000 or $100,000, they are a
lifeline to us.' .
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