PNG’s Grey Listing: Governor Parkop Calls for Pragmatic Approach

 Following Papua New Guinea’s inclusion on the FATF grey list, NCD Governor Powes Parkop has urged the public to remain level-headed and avoid politicizing the issue.

The country was officially placed on the list on February 13, alongside nations including Kuwait, Vietnam, Laos, Congo, and Kenya, sparking widespread debate on the state of PNG’s financial governance.

PNG’s Grey Listing: Governor Parkop Calls for Pragmatic Approach

Governor Parkop stressed that the grey listing does not indicate a failure in fiscal or monetary management. “The Opposition has been portraying this as if the Government has committed some cardinal sin in the economy. That’s simply not true,” he said. The listing, he explained, is linked to gaps in tackling money laundering and terrorist financing.

He explained that the designation reflects technical issues such as weak enforcement, poor inter-agency coordination, and insufficient supervision of financial institutions. Addressing these gaps, he said, is within PNG’s capacity through focused governmental action.

“The public need to know this. We cannot allow the Opposition to take advantage and mislead people,” he said. Governor Parkop called on government agencies to strengthen cooperation and for the Central Bank and Internal Revenue Commission to lead efforts in enhancing compliance.

He warned against over-regulation, particularly from the International Monetary Fund, arguing that excessive rules may inadvertently drive financial activities underground. “Over-regulation is actually promoting money laundering as people, including corporates, tired of all the regulations, are banking and trading via black market,” he said.

The Governor also recommended that PNG invest more in import substitution and reduce dependency on raw mineral exports, stressing that a more self-reliant economy would be less vulnerable to external pressures.