PNG placed on FATF grey list

Papua New Guinea has been placed on the global grey list by the Financial Action Taskforce (FATF) following the organisation’s latest summit in Mexico City on Friday, February 13, 2026, drawing immediate response from the Government on the implications for the country’s financial standing.

The decision means PNG will now be under enhanced monitoring after weaknesses were identified in areas including efforts to combat money laundering and terrorist financing, limited criminal prosecutions, weak oversight of non-bank financial institutions, and low levels of coordination among state agencies.

 PNG placed on FATF grey list as Government moves to reassure partners/File Photo

Treasurer Ian Ling-Stuckey, who is currently in Washington DC holding talks with international financial institutions, acknowledged the listing and said the Government had already mapped out a plan to address the concerns raised. He maintained that the country would work swiftly to exit the grey list and minimise any economic disruption.

He said the Marape-Rosso Government had already begun reassuring development partners and financial stakeholders that the impacts of the enhanced monitoring process would be contained and manageable. According to the Treasurer, three key messages were delivered during high-level discussions overseas.

The first, he said, is that PNG has a comprehensive action plan aimed at removing the country from the grey list faster than its previous listing between 2014 and 2016. He explained that 18 key actions have been identified, including proposed amendments to six laws to strengthen anti-money laundering and counter-terrorist financing frameworks, as well as the completion of the National Risk Assessment in the coming months.

Mr Ling-Stuckey also noted that the economic effects of the listing are expected to remain limited provided the action plan is implemented on schedule. He said advice from local banks indicates that correspondent banking relationships remain strong and are unlikely to face the pressures experienced by smaller Pacific nations.

He further revealed that major development partners have not indicated any plans to scale back support to PNG, with many in fact seeking to expand their engagement. He added that international investors consider a range of factors beyond FATF ratings, including the country’s investment opportunities and partnerships with local stakeholders.

The Treasurer said discussions in Washington with the International Monetary Fund and the World Bank, including meetings with Asia Pacific Department Director Krishna Srinivasan and Executive Directors representing PNG, focused on coordinating technical assistance to support implementation of the action plan and reinforcing ongoing cooperation. “Once again, we will work with our international partners to advance the livelihood of our people.”