PNG at financial risk

Papua New Guinea could be classified as a grey-listed country if it fails to implement the recommendations of the Asia Pacific Group on Money Laundering Secretariat in October next year.

Chief Secretary to Government, Ivan Pomaleu said the government is committed to implement the recommended actions contained in the mutual evaluation report.

"I want to stress that the Marape-Rosso Government does not want the country to be sanctioned under its watch. This government has invested greatly in the AML/CTF [Anti-Money Laundering and Counter-Terrorist Financing] work generally in the anti-corruption work. It will not be fair on you citizens of PNG if the country is sanctioned," Mr Pomaleu said.

According to the Bank of Papua New Guinea [BPNG] the country needs to demonstrate its commitment to investigating and prosecuting money laundering and terrorism financing and increase regulatory reporting to BPNG Financial Analysis and Supervision Unit [FASU]. 

BPNG Governor Elizabeth Genia admits grey listing will have a huge implication for the country's international reputation such as "high borrowing cost, potential trade sanctions and the loss of correspondence banking relationships."

A three-day workshop, which started on Tuesday in Port Moresby will help to develop the country's strategic implementation plan to chart the way forward for anti-money Laundering and counter-terrorist financing initiatives and activities for the next 12 months.

In attendance are delegates from the Asia Pacific Group on Money Laundering Secretariate, Donor Partners and Providers, and the Head of 22 State Agencies that are members of the National Coordinating Committee.