PNG Financial System Faces Growing Threat From Illegal Gambling, Cybercrime

Papua New Guinea’s financial system is facing growing threats from illegal gambling, cybercrime, online scams and money laundering, with financial institutions warning that criminals are increasingly exploiting digital platforms to facilitate illicit activities across borders.

The emerging threats were highlighted during the second Anti-Money Laundering, Counter-Terrorism Financing and Counter-Proliferation Financing (AML-CTF-CPF) Conference, where representatives from major financial institutions, including Bank South Pacific (BSP) and Kina Bank, discussed current financial crime trends affecting the country.

During a panel discussion on current financial crime trends, financial sector representatives identified illegal gambling and technology-driven criminal activities as major concerns, warning that the rapid growth of online platforms was creating new opportunities for criminals to exploit weaknesses in financial systems, regulatory oversight and law enforcement.

The panelists explained that illegal gambling was becoming increasingly interconnected with cybercrime, fraudulent schemes, money laundering and transnational criminal networks. Criminals were reportedly taking advantage of digital technologies to move illicit funds across borders, making it more difficult for authorities and financial institutions to identify suspicious transactions and disrupt criminal operations.

Institutional weaknesses were also identified as a major contributor to the growing financial crime problem. Gaps in supervision, inadequate internal controls and poor coordination among organisations were highlighted as challenges that could undermine efforts to prevent and detect financial misconduct.

The conference discussions called for stronger cooperation between banks, government agencies, regulators, law enforcement authorities and communities to identify suspicious financial activities and prevent illicit funds from entering or circulating within the country's financial system.

Participants also emphasised the importance of improving public awareness, strengthening practical training for financial crime professionals and introducing more effective monitoring of digital transactions. These measures were considered essential in helping financial institutions respond to increasingly complex criminal activities.

The panel further stressed that building the capacity of financial crime investigators and compliance officers was critical to addressing emerging threats. Rather than relying solely on theoretical presentations, professionals needed practical, scenario-based training that reflected real financial crime cases and strengthened their ability to recognise suspicious activities.

Financial institutions were also encouraged to move beyond basic rules-based compliance towards risk-based and typology-based approaches, supported by technology-driven monitoring systems. Such improvements would enable banks and other institutions to identify emerging criminal patterns and respond more effectively to suspicious transactions.

The conference also underscored the need for coordinated action involving domestic and international partners, with banks, government departments, regulatory authorities, law enforcement agencies and communities expected to play complementary roles in protecting Papua New Guinea's financial system.

The two-day conference was jointly hosted by the Bank of Papua New Guinea, through its Financial Analysis and Supervision Unit, and Transparency International Papua New Guinea. It brought together representatives from major financial institutions, including BSP, Kina Bank, CreditBank and TISA Bank.

The conference commenced on September 29 and concluded on October 1, providing a platform for financial sector representatives and other stakeholders to discuss emerging threats, institutional challenges and practical measures to strengthen the country's response to financial crime.