Open a Bank Account in the Cook Islands

Foreigners can open a bank account in the Cook Islands for personal or business purposes. Likewise, they can open an offshore bank account. The latter is set up following the same registration steps.

The main difference from a regular account (also referred to as an onshore account) is that theoffshore bank accountis set up in the Cook Islands, but the transactions made on the account are concluded with parties outside the Cook Islands.

For those seeking jurisdictions that allow them to open an overseas bank account, we mention that the Cook Islands provides the possibility of opening the account online, without the need to be physically present here. However, this varies from one bank to another and this is why we recommend you toget in touch with our specialists, who can advise on the institutions that allow remote registration.

Documentation required for non-residents

As mentioned earlier, non-residents may open a bank account in the Cook Islands, provided that they have all the documentation required by the bank of choice. The documentation may slightly vary from one bank to another, but also based on the type of account the individual wants to set up (onshore/offshore bank account, account for individuals, accounts for businesses, etc.).

Some of the documentation required by those who are non-residents refers to the following:

1. the passport of the individual who is the beneficial owner of the account;
2. information on the current address;
3. information on the occupation of the individual.

In the case of those who will open a bank account for business purposes, the documentation may entail the following:

1. the company’s certificate of registration;
2. the company’s bylaws;
3. information on the shareholders and directors;
4. the power of attorney, provided that the procedure is completed by a third party (such as our team).

The advantages of banking in the Cook Islands

Whether foreigners opt to open an offshore bank accountin the Cook Islands or an onshore one, they can obtain various advantages once the account is functional. In the list below, we present some of the key elements foreigners should be aware of:

1. there are various currencies available for the account – USD, EUR, NZD, GBP, CAD, etc;
2. account holders can obtain a debit card;
3. it is possible toopen an offshore accountas a foreigner who is not a resident of the Cook Islands.
   

Privacy benefits

Foreigners who open a bank account in the Cook Islands can obtain several privacy benefits concerning their financial situation, in accordance with the local law. As per the rules of the International Trusts Act, the privacy of financial records and transactions is guaranteed (however, banks may disclose certain details in specific situations).

The Cook Islands – a safe jurisdiction for financial purposes

It is recommended to open an offshore account in the Cook Islands as the jurisdiction provides a secure and stable environment. While ensuring solid privacy laws, the Cook Islands offers reliable security measures, enforced through the policies of the Financial Supervisory Authority.

Some of these rules refer to the anti-money laundering laws, secure banking systems (including for online banking – which is why it is safe to open an overseas bank account) and full ownership rights to the individuals who have set up the bank accounts (the country offers protection against foreign legal claims/seizures).

Therefore, international clients do not risk their deposits or investments made in the Cook Islands. Additionally, some banks offer insurance coverage for their clients (for the deposits made by the banks’ clients). You can find out from our team further details as to why the Cook Islands can be a reliable destination for depositing your money in an offshore bank account.

Is there a minimum deposit requirement?

Banks can impose minimum deposit policies and they vary from one financial institution to another. In general, the deposit threshold must be met in case of business accounts, but personal accounts can become operational without a minimum deposit. You may refer to our team for advice on the thresholds imposed by local banks.

What financial activities can be completed through a bank account?

Individuals who open a bank account in the Cook Islands, including anoffshore account, can make a variety of transactions. For instance, the account can be used for international transactions, bill payments and online shopping.

It can also be used for tax planning and asset protection. Provided that theoffshore company has an e-commerce activity, the bank account can be used for e-commerce payments. In this sense, investors can set up an offshore merchant account.

Highlights of the financial system in the Cook Islands

Although the Cook Islands is not a large economy, it provides a suitable and welcoming environment to those who want to invest or secure their assets here. Below, we invite you to discover a few key elements of the banking industry in the Cook Islands:

• there are 4 commercial banks, according tothe Cook Islands Statistics Office;
• investments made by foreigners increased from one quarter to another (at the level of 2024) as the value of net foreign assets reached $429,2 million by September 2024, from $415,8 million in June 2024;
• financial matters are regulated by the Ministry of Finance and Economic Management, in accordance with the stipulations of the Ministry of Finance and Economic Management Act 1995-96;
• individuals who will set up an offshore bank account may use the account in about 48 hours after all the documentation has been submitted and duly verified;
• those who make online transfers must know that these can be completed in minimum 1 day and up to 3 days;
• we also mention that the Cook Islands has been included on the OECD’s white list since 2020.

White list is a term that is used by OECD to describe jurisdictions that cooperate with other countries and international institutions concerning the exchange of tax information. This also implies that the said country has transposed in its national law tax standards that are used at an international level.

We invite foreign clients to address our specialists if they have any inquiries concerning the setup of a bank account in the Cook Islands. Please know that those who plan to start the process of offshore company formation here can also rely on our team, as we have long-standing experience in registering legal entities. Of course, we can also represent clients interested in opening onshore businesses.