PNG boosts fraud investigations in bid to leave FATF grey list

PNG authorities are reinforcing the country's response to financial crime by expanding police investigations and strengthening partnerships with financial institutions as part of the campaign to exit the Financial Action Task Force (FATF) grey list.

The Government says coordinated action between law enforcement, banks and regulators will play a key role in protecting the integrity of Papua New Guinea's financial system while improving international confidence.

 PNG boosts fraud investigations in bid to leave FATF grey list

Police Minister Sir John Pundari made the announcement during a press conference at Parliament yesterday, saying the country's economic outlook continues to improve but greater effort is still required to address concerns linked to financial crime.

He said extra funding has been allocated to the Royal Papua New Guinea Constabulary's National Fraud and Anti-Corruption Directorate to enable investigators to respond more effectively to money laundering cases and related offences.

Sir John said the Asset Restraint and Recovery Working Group (ARROW) has already demonstrated positive progress through the seizure, restraint and confiscation of assets connected to criminal proceeds.

He said success will depend on all sectors fulfilling their responsibilities, noting that banks, government agencies and financial regulators have an important role in supporting police operations.

The Minister said Police Commissioner David Manning has instructed financial institutions to promptly notify police of suspicious transactions so investigators can move quickly to secure assets believed to be linked to unlawful activities.

He also cautioned that institutions ignoring their legal reporting obligations could be prosecuted, adding that no individual should receive special treatment because of wealth or long-term banking relationships.

Sir John said closer cooperation between police and the financial sector would strengthen the country's ability to prevent money laundering and other financial crimes.

He said the Government under Prime Minister James Marape remains focused on working with all relevant agencies to secure Papua New Guinea's removal from the FATF grey list.

"The work we are doing today will leave Papua New Guinea with a stronger, safer and more competitive financial sector when we successfully exit the grey list," Sir Pundari said.