New AML/CTF Regulations in Papua New Guinea: What It Means for International Payment Instructions

In an effort to combat money laundering and terrorist financing activities, the Papua New Guinea Government enacted the Anti-Money Laundering and Counter-Terrorist Financing Act (AML/CTF Act 2015). This law requires all banks in the country, including Bank South Pacific, to strengthen their controls and conduct detailed customer due diligence checks to assess the risk of money laundering and terrorism financing, identify potentially suspicious transactions, and ensure full compliance with customer due diligence procedures.

Impact on International Payments

As a result, international payment instructions that are incomplete or contain conflicting information will be subjected to further review or investigation under the AML/CTF Act 2015. To facilitate efficient processing of your international payments, it’s essential to provide accurate information. Here’s what you need to keep in mind:

Full Names

Enter the full name of the sender. No abbreviations or initials are allowed. Example: Kila Tau, instead of K Tau.
Enter the full name of the beneficiary. Example: [Recipient’s Full Name], instead of [Recipient’s Initials].
Enter the full name of the bank you are sending the payment to. Example: Bank of South Pacific Limited, instead of BSP.

Correct Address Format

A Post Office Box (P.O.Box) is no longer accepted as a remitter or beneficiary address by overseas banks.
Provide street or residential addresses for both the sender and the beneficiary.
Include the full country name (Papua New Guinea) as part of the address. Example: Kila Tau, Sec 89, Lot 4 Unit 78 Ela Beach Tower, Gordons, Port Moresby, Papua New Guinea.

BNG Reporting

Fill out the Balance of Payments Reporting Form – R1 accurately, as required by the Central Banking Act – 2000.
This will facilitate the correct reporting of your transaction.

If you have any questions or need assistance, please contact our International Operations Support Team at +675 305 7154 or +675 305 7799, or email sbaim@bsp.com.pg. Our team is here to help you navigate these new regulations, ensuring that your international payments are processed smoothly and efficiently.

At Bank South Pacific, we are dedicated to maintaining the integrity and security of the banking system in Papua New Guinea. Together, we can minimize any inconvenience and ensure full compliance with the new regulations.

Waigani Head Office

Bank of South Pacific Limited