Title: Central Bank Warns of Rising Money Laundering Risks with New Agent in Papua New Guinea

PNG Central Bank Issues Warning on Increasing AML Cases

Following the issuance of a money remittance license to Post PNG Limited, the Papua New Guinea (PNG) Central Bank has issued a fresh warning on the increasing number of anti-money laundering (AML) cases in the country.

Acting Assistant Governor’s Concerns on Technological Advancements

George Awap, the Acting Assistant Governor of the Bank of PNG, spoke at length about the risks associated with technological advancements in financial transactions, especially as Post PNG Limited begins its new role as a Western Union direct agent in PNG.

Acknowledging Money Laundering and Financial Terrorism as Regional Issues

Awap stressed the importance of acknowledging money laundering and financial terrorism as severe regional issues, including in PNG. He stated, “A lot of international and commercial banks are Implementing stringent measures to mitigate the risk of Anti-Money Laundering cases.”

Banks Examining Areas of Risk

These banks, according to Awap, are examining various areas of risk and avoiding low-value businesses, particularly those transactions that lack transparency. He explained, “If there is no financial value or significant potential, they will not seek to engage.”

Banks Becoming Reluctant to Collaborate with Money Remitters

Apart from Post PNG Limited, Awap indicated that there were two to three other money remitters operating within the larger commercial banks. However, banks are growing increasingly reluctant to collaborate with money remitters given the scale of transactions and the lack of clear visibility of these transactions.

Emphasizing Significance of AML and CFT Monitoring

Emphasizing the significance of adequate AML and counter-finance terrorism (CFT) monitoring, Awap stated, “Customer due diligence is paramount in preventing potential issues. When proper customer verification procedures are overlooked, subsequent complications can arise.”

Capacity for Extensive Due Diligence for Commercial Banks

He lauded commercial banks for their expertise in money remittance businesses and their capacity to perform extensive due diligence. He urged Post PNG Limited to follow suit to avoid potential AML and CFT issues within the region.