PNG Police Call on Banks to Report Suspicious Transactions

Papua New Guinea’s Commissioner of Police, David Manning, has called on banks to intensify their role in detecting and reporting corrupt financial activity to ARROW, the government’s anti-money laundering taskforce.

Papua New Guinea’s Commissioner of Police, David Manning

During a meeting with executives from eight local banks, Manning stressed that meeting FATF Greylist requirements relies heavily on financial institutions and their staff acting responsibly.

“Working in partnership to ensure PNG’s financial system is robust and trustworthy is essential for our financial institutions,” Manning told the banking executives. He warned that ignoring suspicious transactions or failing to act promptly could result in legal consequences for banks.

ARROW, which includes the Bank of PNG Financial Analysis & Supervision Unit, the Royal Papua New Guinea Constabulary, and the Office of the Public Prosecutor, is tasked with freezing, restraining, and confiscating illicit funds. Manning stressed that timely SMRs are critical in preventing crime proceeds from leaving the country.

The Commissioner noted that many SMRs relate to misappropriated government procurement funds and stressed the importance of proper documentation. “An SMR relating to suspected misappropriation using Bank of PNG cheques without sufficient supporting documents is a major contributing factor to money laundering in PNG,” he said.

He revealed that there has been a marked rise in frozen illegal funds over the past six months, reflecting the government’s resolve to curb financial crime. Manning also emphasized collaboration with agencies such as Customs, IPA, IRC, ICAC, Forestry, Fisheries, and overseas law enforcement bodies.

“Failure to follow legal process exposes a financial institution to liability for facilitating money laundering,” Manning said. He urged all banks to act quickly and proactively, highlighting that accurate reporting allows ARROW to confiscate illicit funds and return them to legitimate purposes.