Financial Crime World

PNG Enacts Stringent Financial Sanctions Regulations to Combat Money Laundering and Terrorist Financing

Introduction

In an effort to combat transnational organized crime, corruption, security threats, and financial instability, Papua New Guinea has passed a suite of laws aimed at preventing money laundering and terrorist financing. This legislation is part of the country’s efforts to reform its anti-money laundering and counter-terrorist financing system in line with international obligations.

Key Components of the Legislation

  • United Nations Financial Sanctions Act 2015: Establishes the Sanctions Secretariat within the Department of Prime Minister and National Executive Council. Outlines processes for implementing UN sanctions, designating domestic entities, and imposing penalties on those who deal with assets or provide financial services to designated persons.
  • Criminal Code (Anti-Money Laundering and Counter-Terrorist Financing) (Amendment) Act 2015: Defines and criminalizes terrorist acts and terrorist financing. Strengthens Papua New Guinea’s legislative framework on money laundering and terrorist financing, aligning it with international law and corresponding international obligations.

Objectives of the Legislation

  • Target the profit motive of transnational organized crime
  • Increase detection of corruption
  • Reduce opportunities for terrorist organizations to use PNG as a conduit for money laundering
  • Ensure financial stability
  • Provide for information sharing and gathering, reporting, delegation of authority, specific protection measures, and the power to make regulations

Impact on Economic Stability and Security

The legislation is expected to have far-reaching implications for Papua New Guinea’s economic stability and security. It is seen as a critical step in preventing the use of PNG’s financial system for illicit activities and protecting the country from the risks associated with money laundering and terrorist financing.

Conclusion

Papua New Guinea’s efforts to regulate financial sanctions are a significant step forward in combating money laundering and terrorist financing. The legislation demonstrates the country’s commitment to international cooperation and compliance with UN Security Council resolutions, and is expected to have a positive impact on its economic stability and security.