Prime Minister Mark Brown in Rarotonga ahead of the 52nd Pacific Islands Forum Leaders Meeting starting next week. 2 November 2023 Photo: Tiana Haxton
By Losirene Lacanivalu, Cook Islands News
Significant attempts were made from overseas to hack into the government's central network a few weeks ago, revealed Prime Minister Mark Brown.
However, the Prime Minister said that the government's robust firewall security systems were able to fend off these attempts.
Brown revealed this while speaking in support of the Financial Transactions Reporting Amendment Bill 2024, which was passed in parliament last week.
The hacking attempts from overseas had, however, affected a couple of local companies in the hospitality industry in which their systems were compromised, he said.
"We were able to provide support to reduce any damage caused by these cyber security threats," Brown said.
The Financial Transactions Reporting Amendment Bill's primary purpose is to implement the recommended actions put forth by the Global Forum on Transparency and the Exchange of Information for Tax Purposes.
This Forum conducts peer reviews and assessments across over 130 jurisdictions in which Cook Islands is a member of. The aim of these reviews is to evaluate the country's ability to cooperate effectively with established standards, Brown explained.
"The financial transactions reporting requirements that our country have signed up to is an example of the increasing collaboration among international jurisdictions to share information. Additionally, the need to protect the integrity of our financial centres and enhance our cybersecurity measures will only intensify as the world increasingly moves toward digital currencies.
"Our initial peer reviews took place in 2017, and the Cook Islands received a very positive rating for its capacity to exchange information.
"In light of the subsequent growth and improvements in both the quality and quantity of information exchanges, as well as enhancements to the standards themselves, a second round of assessment was initiated just last year. This latest round includes a legal framework assessment and peer reviews that also cover technical, operational, and information security aspects."
Brown said that during this process several gaps in the legal framework were identified, and the Global Forum provided recommendations aimed at helping the country maintain a positive rating.
He said Cook Islands is required to address these recommendations by implementing the necessary legislative amendments by the 31st of this month in order to qualify for another round of onsite assessments and reviews in 2025.
The Prime Minister said the security of information is very important, and the security of tax information, in particular, is of significant importance to the Global Forum.
He added that some of the areas identified for improvement extend beyond legislative requirements.
"For example, all doors in the RMD (Revenue Management Division) office that hold tax information must have security codes. The staff that work there must have proper identification cards with ID cards to swipe and allow access to these rooms," Brown said.
"It is a big change from how our public service has operated for many years and maybe we do not see the actual need for this level of security. However, the Global Forum has its standards to maintain and we are obligated to maintain those standards, so we must follow suit.
"Not only that but now there's also a requirement for proper due diligence to be conducted on employees or people who will work inside these departments. It is these sorts of requirements that compels us in our government agencies, many of them now to change the way we do things and to be mindful of increased security measures that are being imposed on our country. "
Justice Minister Vaine "Mac" Mokoroa, who presented the Bill to Parliament, said: "The key concern here is to ensure that the Cook Islands continues to be a leader in the trust industry … our International Trust Act has been at the forefront of the Cook Islands Offshore Financial Services Industry since its enactment 40 years ago, establishing the Cook Islands as a leader in wealth protection and preservation."
"At that time, these laws were seen as innovative and ground-breaking, and their success is evident in the growth and development of the sector, as well as in the number of jurisdictions that have copied them, either in whole or in part."
Mokoroa said that the Cook Islands Trust Companies Association, which comprises seven Trustee Companies licensed under the Trustee Companies Act, along with the Financial Supervisory Commission, conducted a thorough review of the International Trust Act and recommended necessary changes. These changes were reflected in the Financial Transactions Reporting Amendment Bill.
-This article was first published by Cook Islands News.