PNG Faces FATF Grey List Risk Despite Reforms
Papua New Guinea is bracing for the possibility of being re-listed on the Financial Action Task Force (FATF) grey list by February next year, despite reforms aimed at strengthening its anti-money laundering and counter-terrorism financing systems.
Dr. Eric Kwa, Chairman of the AML/CTF National Coordinating Committee, confirmed the development, saying PNG’s compliance efforts remain under scrutiny. The nation was first added to the grey list in 2014, later removed in 2016, but faces another setback after the latest FATF evaluation.
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| PNG Faces FATF Grey List Risk Despite Reforms says Dr. Kwa |
According to Dr. Kwa, PNG has been under observation since September and must deliver a post-observation report in November. A defense of the country’s position is scheduled for January, ahead of FATF’s February meeting. “We may be listed again, and if so, we will likely remain there for up to two years,” he said.
The evaluation criteria have become more demanding, focusing on operational effectiveness rather than just legal reforms. Kwa said FATF is assessing coordination across agencies, including police, prosecutors, ICAC, the Internal Revenue Commission, and Customs. “This round is tougher because they want to see how institutions are actually working together,” he added.
Treasurer Ian Ling-Stuckey has been closely monitoring the process, conducting fortnightly meetings with the committee to ensure the 22 participating agencies are on track. Kwa admitted that while progress is being made, the government still struggles with coordination.
He stressed, however, that the grey listing process can bring positive change. “This will help us build stronger systems, attract investment, and reduce corruption. In many ways, it forces us to perform better,” Kwa noted.
Highlighting broader challenges, Kwa said legislative reforms alone will not succeed unless citizens embrace accountability. “Fixing laws is not enough. Attitudes must change too. Everyone has a role to play in building a better country,” he said.
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