Papua New Guinea (PNG) recently completed its Mutual Evaluation review, which began in March 2023 and concluded in September 2024. The Mutual Evaluation Report (MER) was adopted during the Asia Pacific Group (APG) Annual Plenary Meeting in Abu Dhabi, UAE, and published on November 14.
To address the report's findings, a Strategic Implementation Plan (SIP) Workshop and National Coordinating Committee (NCC) Meeting on Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) were held at APEC Haus in Port Moresby from November 19-22.
The event gathered key government officials, technical experts, and international partners to develop actionable measures that keep PNG off the Financial Action Task Force (FATF) greylist.
PNG’s AML/CTF Journey
PNG, a member of the APG, was greylisted in 2014 but successfully exited in 2016.
The NCC on AML/CTF, co-chaired by Dr. Eric Kwa, Secretary for the Department of Justice and Attorney General, and Ms. Elizabeth Genia, Governor of the Bank of Papua New Guinea (BPNG), is determined to avoid a repeat scenario.
With just one year to implement the MER recommendations, the NCC has outlined the SIP to coordinate efforts across 22 government agencies.
International donor partners such as the United Nations Office on Drugs and Crime (UNODC), the Asian Development Bank (ADB), and the Australian Department of Foreign Affairs and Trade (DFAT) will provide technical assistance.
The APG Secretariat will also collaborate with PNG to ensure full implementation of the SIP.
Workshop Highlights
The three-day workshop included participants from the APG, donor partners, and key national agencies. Chief Secretary Ivan Pomaleu, OBE, reaffirmed the Marape-Rosso Government’s commitment to improving PNG’s law and justice sectors.
“Our government continues to invest in the law and justice sector to guarantee public safety and foster a secure business environment,” Pomaleu stated.
He emphasized reforms such as restructuring the judiciary with a three-tier system, increasing the number of judges, and advancing anti-corruption laws, including the Whistleblowers Act 2020.
Pomaleu also stressed the urgency of implementing the MER’s recommendations, revealing that FATF’s president had sent a letter to Prime Minister James Marape urging compliance by October 2025 to avoid sanctions.
“There is no room for complacency,” Pomaleu warned as he called for accountability among government agencies and reassured that donor-supported technical resources would be fully utilized to achieve compliance.
Strengthening the Framework
BPNG Governor Elizabeth Genia highlighted the critical role of the SIP Workshop in addressing deficiencies in PNG’s AML/CTF framework. She thanked the APG Secretariat and donor partners for their ongoing support and stressed the high stakes of the mission.
“Greylisting has real consequences, including higher borrowing costs, potential trade sanctions, and reputational damage to our financial system,” Genia noted.
She urged swift action to close gaps identified in the MER, emphasizing the lessons learned from PNG’s prior greylisting experience.
Under Genia’s leadership, BPNG pledged to resource the Financial Analysis and Supervision Unit (FASU) adequately to fulfill its oversight responsibilities. She also reaffirmed the bank’s support for the NCC in coordinating national AML/CTF efforts.
“The cost of non-compliance far outweighs the cost of compliance,” Genia warned, underlining the need for decisive action to safeguard PNG’s financial integrity.
Looking Ahead
The workshop concluded with stakeholders committing to the SIP’s priorities. Over the next year, PNG will focus on enhancing its AML/CTF framework, leveraging donor support, and holding agencies accountable for delivering tangible progress.
Through collaborative efforts, the government aims to demonstrate its dedication to international standards and avoid FATF greylisting.
“Together, and with the leadership of FASU, we will deliver on our commitments,” Genia affirmed.
