Government defends response to FATF grey-listing

Treasurer Ian Ling-Stuckey has hit back at Opposition claims that the government has been sitting on its laurels regarding Papua New Guinea’s grey-listing by the Financial Action Task Force [FATF].

In a heated exchange in Parliament yesterday, Opposition Leader James Nomane accused the Treasurer of failing to act on the Mutual Evaluation Report [MER] since 2024, claiming the delay has left the country’s financial reputation in jeopardy.

"After two years of the Treasurer just sitting on his laurels on a big holiday, he was given the Mutual Evaluation Report in 2024 and he did nothing about it, and now here we are," Nomane said.

However, Ling-Stuckey defended the government’s record, stating that a robust framework is now in place to address the 40 reform measures required to clear the country’s name.

The Treasurer said he was appointed Chairman of the FATF National Coordinating Committee in June last year to provide high-level oversight.

"The FATF National Coordinating Committee has oversight over our 23 agencies dealing with grey-listing," Ling-Stuckey said. "I was appointed Chairman… well after the first visit from October 2024 where the MER was completed, and well after 40 reform measures had to be dealt with."

The FATF grey-listing identifies countries with strategic deficiencies in their systems to combat money laundering and terrorist financing. While the listing does not carry formal sanctions, it often leads to increased scrutiny from international banks and can raise the cost of global financial transactions for PNG businesses.

The National Coordinating Committee is now tasked with synchronizing the efforts of nearly two dozen state agencies to meet international compliance standards and exit the list.