Papua New Guinea

New Documents

The Australian Minister for Justice issued a press release announcing an alliance with Papua New Guinea in the fight against financial crime and terrorism financing through the signing of a memorandum of understanding for the exchange of financial intelligence.

Officials from Papua New Guinea met with the Global Organisation of Parliamentarians Against Corruption to start the process of establishing a Papua New Guinea GOPAC chapter for interested parliamentarians.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department labels Papua New Guinea as a monitored jurisdiction. Papua New Guinea is not considered a major financial center, but it has a relatively stable banking system that is closely integrated with Australia and New Zealand's financial system. Smuggling and public corruption are major problems in the country. Corruption is one of the main sources of illegal proceeds, especially related to misappropriation of public funds linked to extraction industries, related licensing procedures and fraudulent compensation claims. The risk of domestic corruption is likely to increase as the country's economy continues to grow rapidly, fueled by large-scale foreign investment in the mining and petroleum sectors. Misappropriation of government funds occurs via payments which are generally placed through the banking sector and used to purchase real estate or high value vehicles, distributed in cash or moved offshore. The techniques to launder proceeds from other large-scale crimes in Papua New Guinea, such as illegal logging, arms trafficking and fraud, are less clear. Transshipment of drugs and other illegal goods en route to Australia is an emerging risk. The financial intelligence unit reports that criminals are increasingly using corporate entities to hide funds and move them offshore. Papua New Guinea's limited capacity to control its border and the presence of organized criminal groups pose significant risks for money laundering.
  • KYC Covered Entities: Banks, finance companies, savings and loans, and microfinance entities; superannuation funds; insurance and securities companies; gambling houses, casinos, and lotteries; lawyers and accountants; dealers of precious metals and stones; real estate agents; and money changers and remitters
  • STR Covered Entities: Banks, finance companies, savings and loans, and microfinance entities; superannuation funds; gambling houses, casinos, and lotteries; investment managers and insurance companies; real estate agents; dealers in precious metals and stones; money exchanges and remitters; lawyers; and accountants
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 21 (July 2014 - July 2015); Convictions: 0 (July 2014 - July 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 2 High :
Largely Compliant : 6 Substantial :
Partially Compliant : 19 Moderate :
Non-Compliant : 22 Low :

BASEL i

Rank : 68/146
Score : 6.13/10

TRANSPARENCY INTERNATIONAL i

Rank : 137/180
Score : 28/100

Tax Justice Network i

Rank : N/A
Score : N/A