Money laundering, terrorist financing and the financing of weapons of mass destruction impact Papua New Guinea as a member of the global economy. They undermine the functioning of our economy, stop money getting to where it is most needed by our citizens, and create opportunities for crime and corruption. They also have the capacity to destabilize our financial institutions and financial systems. These global threats have led financial systems regulators and financial institutions to strengthen their vigilance in support of the efforts of governments to more easily detect attempts to launder money and finance terrorism.
The Bank of Papua New Guinea, in furtherance of its responsibilities for the regulation and supervision of its regulated financial institutions under the various acts it administers, co-leads PNG's work to stop these threats and administer the Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Act through its financial intelligence unit, the Financial Analysis and Surveillance Unit (FASU).
About FASU
FASU was established under Section 61 of the AML/CTF Act and performs the functions mandated under Section 72 of the Act. FASU carry out intelligence and analysis concerning suspected money laundering and associated predicated offenses and monitors and enforce compliance with the AML/CTF Act.
FASU’s role is to protect PNG from money laundering and terrorist financing. The aim is to objectively ensure individuals and corporate bodies or groups do not abuse PNG’s financial system. In doing so, FASU maintains the integrity of PNG’s Financial system.
FASU's work is directed by the AML/CTF Act and its Strategic Plan 2023-2027. The Strategic plan outlines the vision for a strengthened AML/CTF system and sets out its guiding principles and objectives.
The Act defines the entities that are monitored by FASU. These are defined as any entity that performs the following functions:
- Accept deposits of assets;
- Allow withdrawals or transfers of assets;
- Pays, collects, or draws on a bearer negotiable instrument on behalf any other person; or
- Supplies a safety deposit box or any other forms of safe deposits.
Financially motivated crime is a global phenomenon and its constant evolution poses an ongoing threat to the well-being of our society and our financial system. FASU's functions protect the people of PNG from financially motivated crimes and preserve the integrity of PNG’s financial system.
FASU reports to the Governor of the Bank of Papua New Guinea. The Director of FASU is an officer of the Bank of Papua New Guinea pursuant to Section 62 of the AML/CTF Act, and FASU officers are officers of the Bank of Papua New Guinea pursuant to Section 67(1) of the AML/CTF Act.
In performing its functions, FASU is operationally independent of the Bank (Section 61(2)). The functions and powers of FASU under the Act are vested in the Director (Section 68) and, in performing its functions and powers under the Act, the Director for FASU is operationally independent of the Bank (Section 69(2)).
FASU is required to produce an annual report to the Board of the Bank of Papua New Guinea by 30 March of every year (Section 75).
Implementing AML/CTF in Papua New Guinea
The AML/CTF National Coordinating Committee is the governing body responsible for overseeing PNGs AML/CTF regime. The Committee was initially established by NEC Decision No. 324/2013, with fifteen state agencies participating. Today, the number has increased to 22 state agencies and the Committee is co-chaired by the Governor, Bank of Papua New Guinea and the Secretary, Department of Justice and Attorney General (DJAG).
NCC Member agencies are:
- Bank of Papua New Guinea / FASU
- Department of Justice & Attorney General
- Investment Promotion Authority
- PNG Securities Commission
- Department of Prime Minister & NEC
- Department of Finance
- Department of Treasury
- Office of the Public Prosecutor
- Royal PNG Constabulary
- Internal Revenue Commission
- PNG Customs Service
- Department of Foreign Affairs & Trade
- National Gaming & Control Board
- Office of the Insurance Commissioner
- PNG Immigration and Citizenship Authority
- National Intelligence Organization
- National Fisheries Authority
- PNG Forest Authority
- The Ombudsman Commission
- National Maritime Safety Authority
- PNG National Narcotics Bureau
- Independent Commission Against Corruption
The Bank of PNG and DJAG, as co-chairs, are responsible for coordinating AML/CTF reforms by Committee members and ensure that PNG meets the Financial Action Taskforce (FATF) standards and its international obligations.