The Bank of Papua New Guinea published an update on Papua New Guinea’s progress since its Financial Action Task Force (FATF) mutual evaluation, outlining the remaining work government agencies must complete during the post-evaluation observation period to avoid a potential grey listing. Papua New Guinea’s mutual evaluation concluded in October 2024 and is followed by a 12-month observation period ending in October 2025, after which the FATF will decide whether to place the country on the grey list. While the evaluation commended some elements of the anti-money laundering framework, including cross-agency work supporting convictions in the Papa Lea Lea drug smuggling case, the central bank flagged areas requiring immediate attention and called for more prosecutions and arrests. It also highlighted that the Anti-Money Laundering Act can apply to any person making payments or remittances above the specified thresholds and that money can be moved through non-cash channels including alluvial gold and cryptocurrency. Remediation work is being coordinated through a National Coordination Committee of 23 agencies, co-chaired by the Bank of Papua New Guinea and the Department of Justice and the Attorney General, reporting via the Treasurer to Parliament, with support from national and international experts including former FATF Executive Secretary Rick McDonell. The central bank expects further government action in the coming months and indicated that efforts to address the mutual evaluation findings are planned through January 2026.
Bank of Papua New Guinea 2025-08-06
Bank of Papua New Guinea sets out AML and CFT work programme to avoid possible FATF grey listing in 2026
The Bank of Papua New Guinea reported progress since its Financial Action Task Force (FATF) mutual evaluation, emphasizing the need for further government action to avoid grey listing. The central bank highlighted areas needing immediate attention, including increased prosecutions and arrests, and noted that remediation efforts are ongoing, coordinated by a National Coordination Committee with support from national and international experts.