PNG likely to be grey listed by February 2026
Papua New Guinea is likely to be grey listed by the Financial Action Task Force [FATF] by February next year.
That’s according to the Chairman of the Anti-Money Laundering /Counter Terrorist Financing-National Coordinating Committee, Dr Eric Kwa.
In an exclusive interview with this newsroom, Dr Kwa says although the committee is working hard to meet the requirements by FATF, the future looks gloomy.
Papua New Guinea was first grey listed by the Financial Action Task Force in 2014 due to significant deficiencies in its Anti-Money Laundering and Counter Terrorism Financing framework and was delisted in 2016 after necessary legislative reforms were implemented.
Since then, FATF listed several requirements for PNG to comply with to strengthen its AML/CTF mechanisms.
PNG was again reviewed in 2023-2024 and was given a Mutual Evaluation Report, indicating action items that must be ticked off by the end of this year.
Within the 12-months observation period which ends in October, the AML/CTF National Coordinating Committee has come under the fiery furnace of the national government to meet the requirements and evade grey-listing.
“Now, this is not the first time we've been assessed. This is our second assessment. The first time we went through, we failed already. We were assessed again for two years, and then they removed us from the list. So, we did go to the first assessment, and we failed. This is the second time, and our third time will be in 2030."
Dr Kwa admitted that they are aware of the country's fate and doing their best to reduce the consequences.
"We've been given until 11 November to submit what they call a post-observation report. We are currently under observation from September to November. That's what they call a post-observation report. So, they observe us, and then we submit a report in November.
"They give us the feedback. We're going to defend in January. In January, our team and I will go and defend our position. In February, the FATF will probably put us on the grey list. We anticipate maybe within two years. Because that's what we went through the last time."
According to Dr Kwa, unlike the first evaluation, this evaluation is focused on both the Technical Compliance and Effectiveness of PNG's AML/CTF system, hence is highly technical.
"This time is a bit difficult. Because in the past, they asked us to amend the laws. This time, they're asking us, where is the connectivity? What is the cooperation between the police, ICAC, DJAC, Public Prosecutor, Police, IRC, and Customs?
"Now they're looking at those networks. So, it's a bit more technical this time."
Dr Kwa noted that the government understands the seriousness of this matter and has intervened.
Treasure Ian Ling Stuckey is running meetings with the AML/CFT National Coordinating Committee every two-weeks to ensure that all 22 agencies under NCC are doing what’s required of them.
"For me, it's really an issue of coordination, that's all. How we can collaborate, that's the issue. So, my concern is, how do we improve that?"
Kwa believes that whilst grey listing is bad for the country, it will prompt positive changes in the near future.
"So, this whole exercise helps us to strengthen our systems, make Papua New Guinea a better place for investment, and make Papua New Guinea a better place for anti-corruption. So, it basically touches on every aspect of government, and that's why we have more than 22 agencies involved, including the Office of the Prime Minister, it is being assessed as well. So, this team, the chief secretary, how they operate, justice, police, ICAC, every one of us is being assessed.
"And so, for me, it's really encouraging because somebody's assessing us and telling us, you're not doing your duty. Because for me, it's good for the country, it's all right, we might go into grey-listing, but it's good for us to wake up and make a change."
Meantime, Dr Kwa stressed that leaders can go on and make necessary changes to legislations and all but if people fail to hold each other accountable, justice is denied at all levels.
"We've been running this thing for the last five years, so a lot of things didn't happen. We've been meeting, we've been improving, but we need a lot more. And that tells you what is generally across the country. But what does it tell you? Every day, that's simple compliance.
"If you cannot put your rubbish in the right place, if you cannot just stand up against the violence of a woman and man fighting on the street, and you're going and say, stop but you're letting them fight, and the man is killing the woman. What kind of country are we heading to? So, I can try my best. And that's what I've been doing, trying my best as a chairman of the committee all these last five years, trying to get things right.
"But I can't get it right because right at my back, right in front of my eyes, somebody's stealing land.
That's the sickening thing about this country.
"We need to fix that attitude. So, if we fix that, then you can tell me, fix the law, fix the policy, fix the system, I'll do it. But the person down there has a terrible attitude.
"So, tell me how I can fix this place? It takes two ways. You do your bit; I do my bit, and together we can improve this country." Dr Kwa said.