Marape: Government working hard to avoid grey listing

Prime Minister James Marape has assured Parliament that his government is taking urgent action to prevent Papua New Guinea from being grey listed by the Financial Action Task Force [FATF], a move that could have serious economic consequences for the country.

The assurance came in response to a question raised by Deputy Opposition Leader James Nomane during Parliament on Wednesday.

Nomane warned that grey listing would significantly damage investor confidence, worsen inflation, and drive up the cost of imports.

“Grey listing will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues,” Nomane said.

“Could you tell us the composition of the anti-money laundering task force and advise the country on the status of the financial intelligence units that are responsible for tracking and prosecuting money laundering.”

In reply, Marape confirmed that an anti-money laundering task force has been established and that urgent coordination is underway across multiple state agencies.

“I did summon all relevant agency heads to a critical meeting on Monday, giving them, in no uncertain terms, clear direction for them to work day and night to avert the possibility of us moving into the grey listing,” Marape said.

The prime minister said oversight of the task force has now been transferred from the Minister for Justice to the Minister for Treasury, who is coordinating efforts involving the Financial Analysis and Supervision Unit [FASU], Bank of PNG, State Solicitor, Department of Treasury, Finance Department, Auditor General, and other state agencies.

The Prime Minister highlighted the government’s political will to meet international standards while also accounting for Papua New Guinea's unique economic structure.

“We are trying to reconcile against standards of high rated economy of global practice, but I said give consideration to PNG's own economic characteristics without compromising the principle of living in an economy that is devoid of money laundering,” Marape said.

“80% plus of our people in our rural areas still live in the cash economy and so that tidiness should go on.”

He also highlighted the inclusion of the Independent Commission Against Corruption (ICAC) in the task force and directed agencies to follow the money trail, starting with the Department of Finance, to investigate possible money laundering activities.

Other nations have been put in the, they have worked their way out of the grey list,” the PM said.
“I have given them clear instructions. Come October, we don't want to be on the grey list.”

The FATF has given PNG until October 2025 to address key deficiencies in its anti-money laundering and counter-terrorist financing systems.

Failure to do so would see PNG placed on the grey list, signaling to global financial institutions that the country poses a higher risk for financial crimes.