FATF and International Engagement

The Financial Action Taskforce (FATF) is the body that leads global decisions, coordination and action to counter the threats of the abuse of the financial system by criminals and terrorists. It supports member countries to strengthen their ability to respond to these threats and to implement their anti-money laundering and counter-terrorism financing frameworks.

FATF sets international standards that aim to prevent money laundering, terrorist financing and proliferation financing activities and the harm they cause to society, thereby strengthening financial sector integrity and contributing to safety and security. 

PNG, as a member of FATF, is committed to complying with these standards and ensuring they are fully implemented. FATF holds countries to account that do not comply and, if a country repeatedly fails to implement the standards, it can be named a Jurisdiction under Increased Monitoring or a High-Risk Jurisdiction that can lead to grey-listing or black-listing through the Mutual Evaluation assessment process. 

Being placed on the grey list has tangible consequences for a country's economy and financial system. It can create restrictions to cross-border transactions, lead to difficulties for a state obtaining credit, and limit inward foreign investment. More importantly, it can seriously affect correspondence banking relationships, leading to increased costs and decreased services.

PNG has been a member of the Asia Pacific Group on Money Laundering (APG) since 2008. APG is the largest FATF-styled regional body with membership of 42 countries within the Asia Pacific region. 

Mutual Evaluation

All member countries of FATF are subject to Mutual Evaluation (ME) reviews. They are assessed by FATF’s regional bodies, which make recommendation to FATF‘s International Committee Review Group for a decision. 

PNG was first assessed by experts within the APG and APG Secretariat in 2010 and was again reviewed in 2023/2024. PNG underwent the Review Group process during the first review and was grey-listed in 2014. In February 2016, PNG was removed from the grey-list when all technical requirements were complete. 

The second assessment commenced in March 2023 and took into consideration PNG's technical compliance with standards as well as their effectiveness under the new FATF methodology. The outcomes of PNG's review were adopted during the APG Annual Plenary Meeting in September 2024, and a Strategic Implementation Plan has been formulated to address gaps identified. PNG will be working to complete the plan, and potentially avoid grey-listing, during 2025. This is a national priority and all members of the National Coordinating Committee will be working together to achieve the best outcomes for our country and our citizens.

Key Documents