The Bank of Papua New Guinea published an update on Papua New Guinea’s recent Financial Action Task Force mutual evaluation, which found significant shortcomings in the effectiveness and technical compliance of the country’s anti-money laundering and counter-terrorism financing framework. The bank set out a cross-government remediation programme running through an observation period that ends in October 2025, while noting it is expected that Papua New Guinea will be placed under increased monitoring and should therefore prioritise minimising the time spent on the grey list. The evaluation found the legislative framework is robust on paper, but highlighted challenges in inter-agency coordination, successful prosecution of financial crimes and recovery of illicit assets. Key steps cited include the development of an Anti-Money Laundering and Counter-Terrorism Financing Strategic Implementation Plan 2024-2025 with 73 action items endorsed by the National Executive Council in March 2025, the establishment of the National Coordination Committee with 23 member agencies, and the creation of two Independent Commission Against Corruption-led mechanisms, the Anti-Money Laundering Joint Task Force and the Asset Recovery and Money Laundering Operations Committee. The update also points to planned regulatory and supervisory enhancements for financial institutions and designated non-financial businesses and professions, including a risk rating tool and strengthened onsite and offsite supervision, alongside Department of Justice and Attorney General-led law reforms and donor-supported technical assistance. The Bank of Papua New Guinea’s Financial Analysis and Supervision Unit and the Department of Justice and Attorney General will jointly monitor implementation of the Strategic Implementation Plan, and the National Coordination Committee plans monthly updates ahead of the October Asia Pacific Group on Money Laundering session.
Bank of Papua New Guinea 2025-04-24
Bank of Papua New Guinea outlines FATF mutual evaluation remediation plan amid observation period ending October 2025
The Bank of Papua New Guinea identified major deficiencies in the country's anti-money laundering and counter-terrorism financing framework after a Financial Action Task Force evaluation, prompting a cross-government remediation programme through October 2025. Key initiatives include a Strategic Implementation Plan with 73 actions, a National Coordination Committee, and regulatory enhancements, with ongoing monitoring by the Financial Analysis and Supervision Unit and the Department of Justice and Attorney General.