BPNG steps up fight against money laundering to protect PNG economy

The Bank of Papua New Guinea has announced intensified efforts to strengthen the country’s anti-money laundering systems ahead of a critical FATF review in October 2025, warning that a grey listing could hit investor confidence and trade flows.

Speaking at the Port Moresby Chamber of Commerce & Industry [POMCCI] Business Breakfast recently, Governor Elizabeth Genia said PNG must demonstrate compliance with international standards to avoid being placed on the FATF grey list in 2026.

“Grey listing affects us all, it impacts investor confidence, trade flows, and increases the cost of doing business,” Governor Genia said. “But improved systems and more prosecutions will show bad actors that Papua New Guinea is not a place to bring illegal business.”

While PNG’s cross-agency work in high-profile cases like the Papa Lea Lea drug smuggling conviction was praised, gaps remain in the anti-money laundering framework, particularly regarding non-traditional methods such as cryptocurrency and alluvial gold.

Governor Genia said all citizens must play a role in combatting money laundering. “Any person making payments or remittances above the thresholds can fall under the Anti-Money Laundering Act. This is not limited to cash,” she said.

Efforts to address the FATF findings are being coordinated through the National Coordination Committee, which brings together 23 government agencies and is co-chaired by BPNG and the Department of Justice.

The initiative also benefits from international expertise, including guidance from former FATF Executive Secretary Rick McDonell.

Prime Minister James Marape has committed to strengthening governance and ensuring illegal wealth is pursued and confiscated, reinforcing PNG’s commitment to global financial standards.

Genia urged citizens and businesses to support the reforms, reiterating that stronger enforcement and transparency will protect the economy and ensure Papua New Guinea remains an attractive destination for investment.