Papua New Guinea Cracks Down on Financial Sanctions with New Secretariat
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Strengthening Anti-Money Laundering and Counter-Terrorist Financing Efforts
Papua New Guinea has taken a significant step to combat financial abuse by establishing a sanctions secretariat, aimed at strengthening its anti-money laundering (AML) and counter-terrorist financing (CFT) efforts.
The PNG Sanctions Secretariat
Housed within the Department of Prime Minister and National Executive Council under the Office of Security Coordination and Assessment, the PNG Sanctions Secretariat is responsible for:
- Dealing with assets belonging to or controlled by designated persons or entities
- Making financial services available to them
The secretariat is a key player in Papua New Guinea’s efforts to combat money laundering and terrorist financing.
History and Purpose
The secretariat was established to support the national coordinating committee for AML/CFT, which was endorsed by the NEC in 2014. The purpose of the secretariat is to play a critical role in mitigating the risks associated with money laundering and terrorist financing.
The Threat of Money Laundering and Terrorist Financing
Money laundering and terrorist financing are serious crimes that can have devastating economic consequences if left unchecked. They pose a significant threat to:
- The integrity and stability of Papua New Guinea’s financial institutions and systems
- Foreign investment, as weak AML/CFT frameworks make it easier for criminals to move their money through financial systems without detection and disruption
Consequences of Inaction
If left unchecked, money laundering and terrorist financing can lead to:
- Financial instability and economic stagnation
- Loss of investor confidence and reduced foreign investment
- Erosion of trust in the country’s financial institutions and systems
The Role of the PNG Sanctions Secretariat
The PNG Sanctions Secretariat will play a critical role in mitigating these risks by ensuring that Papua New Guinea has a strong and effective AML/CFT regime in place. By doing so, the secretariat will help:
- Protect the integrity of domestic and global financial systems
- Prevent financial abuse from undermining the country’s economic development
By establishing the PNG Sanctions Secretariat, Papua New Guinea is taking a significant step towards strengthening its anti-money laundering and counter-terrorist financing efforts, and protecting its financial institutions and systems.