Papua New Guinea (PNG) faces significant challenges in addressing money laundering (ML) and asset recovery.
According to the Financial Action Task Force (FATF) Mutual Evaluation Report (MER) published in November 2024, the country lacks skilled personnel, institutional resources, and prioritization to tackle these issues effectively.
Consequently, PNG has until October 2025 to implement the FATF recommendations or risk being grey-listed, a designation that could harm its economy and international reputation.
Anti-Money Laundering Taskforce established
In response, the Independent Commission Against Corruption (ICAC) has collaborated with key government departments and the Bank of PNG to form the Anti-Money Laundering Joint Taskforce (AMLJTF).
The taskforce aims to enhance coordination and effectiveness in combating ML and recovering assets. The initiative, formalized during a signing ceremony on December 18, 2024, at the Stanley Hotel in Port Moresby, is a critical step in aligning PNG’s efforts with FATF’s global standards.
Money laundering poses a significant threat to PNG, exacerbated by corruption and transnational organized crime. The AMLJTF brings together government and private sector expertise to address these risks, improve compliance, and achieve meaningful outcomes by 2025.
Baulch’s Call for Action
At the signing ceremony, ICAC’s Deputy Commissioner of Operations, Daniel Baulch, emphasized the urgency of reinforcing PNG’s commitment to the AMLJTF. He warned that grey-listing would severely damage PNG’s economy, deter foreign investment, and tarnish its international standing.
Baulch outlined the taskforce’s objectives:
- Enhancing intelligence on ML risks
- Investigating financial crimes
- Recovering illicit assets
- Strengthening enforcement measures
Achieving these goals would bolster PNG’s reputation, attract investment, and create a transparent financial system, Baulch said.
He emphasized that the AMLJTF was established to create a coordinated and effective response to asset recovery and money laundering, pointing out that PNG is particularly exposed to financial crimes, and tackling these threats is essential for the country’s economic stability and national security. Their inter-agency collaboration ensures a comprehensive approach to combating money laundering, he said.
Customs Chief Urges Collaboration
David Towe, Chief Commissioner of PNG Customs Services, praised the establishment of the AMLJTF and stressed the need for inter-agency collaboration.
He highlighted the country’s vulnerability to grey-listing and the adverse effects on its economy, including restricted trade and higher transaction costs.
"We have the report from the FNCF, and we are at risk of being re-listed. Being re-listed is very bad for us, especially for the financial integrity of our country," Towe said.
"The impact of being re-listed is serious, and that calls for action," he added.
To address these challenges, Towe announced the formation of a dedicated Customs team to implement FATF recommendations.
"In public meetings, we tend to work in silos, and most times we don't get to deliver results. I want to encourage every one of us, the members of the FNCF and other law enforcement agencies, for us to work together on this," he said.
He urged other agencies to adopt a collaborative approach, citing past successes achieved through partnerships with public and private sector entities.
Implications of Grey-Listing
Failing to meet FATF standards could have severe repercussions for PNG, Baulch said:
- Economic Impact: Reduced foreign investment, limited trade, and restricted access to global banking services.
- Reputational Damage: Perceived as a high-risk financial destination, discouraging investors.
- Pressure to Reform: Increased international oversight and demands for legislative changes.
- Risk of Blacklisting: Non-compliance could lead to blacklisting, resulting in sanctions and exclusion from global financial systems.
Strengthening National Commitment
Baulch stressed the importance of complying with international anti-money laundering standards. He called for enhanced collaboration among regulatory and law enforcement agencies to ensure swift investigations and asset recovery.
“By working together through the AMLJTF, PNG can secure a prosperous and stable future for its people,” Baulch said.
He reaffirmed ICAC’s commitment to supporting the taskforce and urged all stakeholders to intensify their efforts against financial crimes.
AMLJTF Membership and Reporting
The following agencies have joined the AMLJTF:
- Independent Commission Against Corruption (ICAC)
- Financial Analysis and Supervision Unit (FASU) of the Bank of Papua New Guinea
- Papua New Guinea Customs Services
- Immigration & Citizenship Services Authority (ICSA)
- Investment Promotion Authority (IPA)
- Auditor General’s Office (AGO)
Additional agencies, including the Office of the Public Prosecutor (OPP), Royal Papua New Guinea Constabulary (RPNGC), Department of Justice and Attorney General (DJAG), and Internal Revenue Commission (IRC), will join in 2025.
The AMLJTF will report to the Asset Recovery and Money Laundering Operations Committee (ARMLOC), comprising RPNGC, FASU, OPP, and ICAC. ARMLOC’s mission includes coordinating intelligence, investigations, and prosecutions related to ML and asset recovery.
The committee will meet monthly and support the Strategic Implementation Plan (SIP) agreed upon by the National Coordinating Committee (NCC) and the Asia Pacific Group Secretariat.
The AMLJTF’s establishment marks PNG’s commitment to addressing money laundering and corruption. By fostering collaboration and adhering to FATF standards, the taskforce aims to safeguard PNG’s economic stability and global reputation.
“Let us work together to uphold the rule of law, enhance our global standing, and build a safer, more prosperous Papua New Guinea,” Baulch concluded.
