Financial Crime World

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Papua New Guinea Strengthens Anti-Money Laundering Framework with ADB’s Technical Assistance

The Asian Development Bank (ADB) has successfully completed a technical assistance project to strengthen Papua New Guinea’s (PNG) anti-money laundering (AML) and combating the financing of terrorism (CFT) framework.

Project Highlights

  • The project involved drafting five key pieces of legislation: AML/CFT Act, Proceeds of Crime Act, Criminal Code Amendment Bill, Financial Sanctions Bill, and Cash Courier Draft Bill.
  • The consultant worked effectively with a small legislative drafting team and was flexible in responding to changing circumstances.
  • The outputs were rated satisfactory, and the client expressed satisfaction with the inputs and activities in addressing AML-CFT deficiencies in PNG.

Key Achievement

The project’s key achievement was the approval of the five Bills by Parliament on July 30, 2015, and their publication in the gazette on February 4, 2016. The new legislation has significantly strengthened PNG’s legislative framework to combat transnational financial crime and comply with global and regional standards.

Impact

As a result of the project, PNG was successfully removed from the Financial Action Task Force (FATF) “grey-list” at the plenary meeting in Busan in June 2016. FATF praised PNG for its “unprecedented reform and commitment of the highest standard to strengthening its AML/CFT systems.”

Capacity Building

The project enabled the development of a cadre of experts within the Department of Justice and Attorney General (DJAG) who have a comprehensive knowledge of regulatory policy and laws, as well as practical experience in implementing AML/CFT standards.

Enhanced Capacity

The establishment of the Financial Analysis and Supervision Unit (FASU) at the Bank of PNG has enhanced the country’s capacity to monitor and enforce AML/CFT rules. FASU is actively increasing its global network with similar organizations, which will help better monitor AML/CFT issues.

Project Evaluation

The project was highly relevant and effective in assisting PNG address its AML-CFT deficiencies, and was consistent with ADB’s Midterm Review of Strategy 2020, Financial Operations Plan, and the Pacific Approach. The TA achieved its outcomes of strengthening the legislative framework on AML/CFT and complying with FATF and APG standards.

Sustainability

Overall, the project is rated highly successful, and its outcomes are likely to be sustainable.