FATF status

Papua New Guinea is not on the FATF List of Countries that have been identified as having strategic AML deficiencies.

Latest FATF Statement - 24 June 2016

The FATF welcomes Papua New Guinea’s significant progress in improving its AML/CFT regime and notes that Papua New Guinea has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2014. Papua New Guinea is therefore no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Papua New Guinea will work with the APG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Papua New Guinea was undertaken in 2024. According to that Evaluation, Papua New Guinea was deemed Compliant for 4 and Largely Compliant for 13 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 0 of the Effectiveness ratings.

Corruption is a major barrier to progress in Papua New Guinea (PNG), significantly impacting governance, economic development, and social stability, as evidenced by a low score of 29 on the 2023 Corruption Perceptions Index. Internal issues such as climate change, illegal logging, and limited enforcement of anti-corruption laws exacerbate the situation, highlighting the need for comprehensive legal reforms and better alignment with global anti-corruption standards. Despite ratifying the UN Convention against Corruption, PNG's lack of participation in key agreements underscores the urgency for improved measures to combat corruption.

Papua New Guinea (PNG) is the largest economy in the Pacific Islands, with significant trade and investment opportunities primarily in the petroleum and mining sectors. The government projects a 5.0 percent economic growth rate alongside an equal inflation rate, while initiatives like the Connect PNG program aim to enhance infrastructure and attract foreign direct investment (FDI) to foster an export-driven economy.

Papua New Guinea (PNG) presents significant investment opportunities, particularly in the petroleum and mining sectors, despite a recent decline in foreign direct investment (FDI). The government is actively promoting FDI through initiatives like the National Trade Policy and the Connect PNG program, which aims to improve infrastructure and regulatory frameworks to attract institutional investors. However, challenges remain, including a recent delay in a major investment decision and concerns over environmental and social impacts related to resource extraction.