The Offshore Banking Act 1981 governs the operation of offshore banks in the Cook Islands. Banks are licensed in two categories. The holder of an "A" class offshore banking licence is required to maintain a surplus of capital and reserves of not less than US$10,000,000, and in the case of a "B" class licence holder, not less than US$ 2,000,000. A licensed offshore bank is exempt from any form of taxation or duty in the Cook Islands. Interest paid to non-resident depositors is similarly exempt. All banks must file audited accounts annually with the Monetary Board. The Act includes specific secrecy provisions. The Asiaciti Trust Group has extensive experience in the formation and management of offshore banks.
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