Financial Crime World

Title: New Anti-Money Laundering and Counter-Terrorist Financing Laws in Papua New Guinea: A Stronger Shield Against Transnational Crimes

PNG has fortified its legal framework against financial crimes by implementing new Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Laws. These legislative reforms align with the government’s strategic priorities, namely:

  • Combating organized crime
  • Anti-corruption
  • Security
  • Financial stability

Key Reforms

Some of the key reforms include:

  • Anti-Money Laundering and Counter-Terrorist Financing Act 2015
  • United Nations Financial Sanctions Act 2015
  • Criminal Code (AML/CTF) (Amendment) Act 2015
  • Proceeds of Crime (Amendment) Act 2015
  • Mutual Legal Assistance (Amendment) Act 2015

Combating Terrorism Financing

For terrorism financing, the following aspects of the legislation are crucial:

  • Criminal Code 1974
  • United Nations Financial Sanctions Act 2015

UN Financial Sanctions Act 2015

The UN Financial Sanctions Act 2015 offers the following essential features:

  1. Establishment of a dedicated Sanctions Secretariat in the Department of Prime Minister and National Executive Council (PM&NEC)
  2. Procedures for implementing UN sanctions and domestic designation
  3. Offenses and corresponding penalties for dealing with assets and providing financial services to designated persons or entities
  4. Processes for review, revocation, and seeking authorization to deal with frozen assets
  5. Information sharing and gathering, reporting, delegation of authority, protection measures, and the power to make regulations

These provisions aim to:

  • Deter potential supporters of terrorism financing
  • Uncover hitherto unknown cells and financiers
  • Prevent PNG from serving as a conduit for terrorist financing
  • Dismantle terrorist financing networks
  • Enhance international cooperation and adherence to UNSCRs 1267, 1373, 1718, and 1737

Amended Criminal Code 1974

The Criminal Code 1974 was similarly amended to:

  • Define and criminalize terrorist acts and financing
  • Fortify Papua New Guinea’s legislative response to money laundering and terrorist financing as required under international law

The Criminal Code AML/CTF Amendment Act now covers the scope of conduct essential under international law for both money laundering and terrorist financing offenses.