Financial Crime World

Financial Intelligence Unit Plays Crucial Role in Papua New Guinea’s Anti-Money Laundering Efforts

Papua New Guinea has been urged to establish a Financial Intelligence Unit (FIU) to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) regime.

Establishing an Effective FIU

According to global standards, the FIU should be able to:

  • Obtain additional information from reporting entities
  • Have access to timely financial, administrative, and law enforcement data
  • Disseminate the results of its analysis to relevant authorities in a secure and protected manner

The FIU plays a central role in AML/CFT operational networks, providing support to other competent authorities in their efforts to combat financial crimes.

Core Functions of an FIU

The FIU’s core functions include:

  • Receipt of disclosures filed by reporting entities
  • Analysis of the information received
  • Dissemination of the results of its analysis to relevant competent authorities
  • Obtaining additional information from reporting entities as needed

Access to Information and Security Measures

The FIU should have access to a wide range of financial, administrative, and law enforcement information, including commercially held data. To ensure the security and confidentiality of sensitive information:

  • Rules should be in place governing the handling, storage, dissemination, and protection of sensitive information
  • The FIU should prioritize operational independence, free from undue political or government influence or interference

Resources and Membership Opportunities

Papua New Guinea is encouraged to consider providing the FIU with adequate financial, human, and technical resources to conduct its mandate effectively. Additionally:

  • The country’s FIU should apply for membership in the Egmont Group, an international organization that provides guidance on information exchange between financial intelligence units
  • Papua New Guinea can strengthen its AML/CFT regime by establishing an effective FIU

Potential Reporting Requirements

To improve the effectiveness of the FIU, Papua New Guinea is encouraged to consider a system where financial institutions and designated non-financial businesses and professions (DNFBPs) report all domestic and international currency transactions above a fixed amount. This would enable the FIU to identify potential money laundering and terrorist financing activities more effectively.

By establishing an effective FIU, Papua New Guinea can improve its ability to combat financial crimes and strengthen its AML/CFT regime.