World Bank2013-02-272013-02-272011-07https://hdl.handle.net/10986/12563Papua New Guinea (PNG) faces very serious risks of Money laundering (ML) from various criminal activities including domestic corruption (misappropriation of public funds), which is considered a serious problem. PNG is experiencing rapid economic growth, very large scale foreign investment and an escalating crime rate. While the Financial Intelligence Unit (FIU) is building its capacity, there is no clear political level commitment to 'follow the money' to tackle corruption and other crimes, and no demonstrated commitment to regulate and supervise AML obligations by financial sector regulators, which severely hampers the authorities ability to tackle financial aspects of corruption. Misappropriation of government funds occurs using government payments which, according to the authorities, are generally placed through the banking sector in PNG and used to purchase real estate, high-value vehicles, distributed in cash or moved offshore. This report provides a summary of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) measures in place in PNG at the time of the mission or shortly thereafter. The report was produced by the World Bank as part of the Financial Sector Assessment Program (FSAP) of PNG.en-USCC BY 3.0 IGOABUSEACCESS TO INFORMATIONACCESS TO RESOURCESACCESSIBLE CREDITACCOUNTABILITYANTI-CORRUPTIONANTI-MONEY LAUNDERINGASSETSAUDITORBANK ACCOUNTBANK ACCOUNTSBANK FINANCE COMPANIESBANKING ASSETSBANKING FEESBANKING SECTORBANKING SECTOR ASSETSBANKING SERVICESBANKSBEST PRACTICESBRIBEBRIBERYBRIBESBROKERBROKERSBUSINESS LIFEBUSINESS PEOPLECASH TRANSACTIONCENTRAL BANKCENTRAL SECURITIES DEPOSITORYCHECKSCIVIL SOCIETYCOLLUSIONCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL LAWSCOMMODITY PRICECOMMODITY PRICESCOMMON LAWCOMPLAINTSCONFIDENCECONFIDENTIALITYCORPORATION FINANCECORRUPTCORRUPT OFFICIALSCORRUPT PRACTICESCORRUPTIONCORRUPTION OFFENCESCORRUPTION PERCEPTIONCORRUPTION PERCEPTION INDEXCPICPI SCORECRIMECRIMESCRIMINALCRIMINAL LAWSCRIMINAL LIABILITYCRIMINALITYCURRENCYCURRENCY EXCHANGEDECENTRALIZATIONDEPOSITDEPOSITSDEVELOPING COUNTRYDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDISCLOSURE REQUIREMENTSDISPUTE RESOLUTIONDOMESTIC MARKETDUE DILIGENCEECONOMIC GROWTHELECTRONIC PAYMENTELECTRONIC PAYMENT SYSTEMSENFORCEMENT AGENCIESENTREPRENEURSEQUALITYEQUIPMENTETHNIC GROUPEXCHANGE CONTROLSEXPENDITUREEXPENDITURESEXPLOITATIONEXTRADITIONFIGHT AGAINST CORRUPTIONFINANCIAL ASSETSFINANCIAL CRIMESFINANCIAL CRISISFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTELLIGENCEFINANCIAL INTELLIGENCE UNITFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SECTOR ASSESSMENTFINANCIAL SECTOR REFORMSFINANCIAL SERVICEFINANCIAL SERVICE PROVIDERSFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFOREIGN EXCHANGEFOREIGN FUNDSFOREIGN INVESTMENTFRAUDGANGSGOOD GOVERNANCEGOVERNMENT ASSETSGOVERNMENT BONDSGOVERNMENT FUNDSGOVERNMENT OFFICIALSGROSS DOMESTIC PRODUCTHOLDINGHUMAN DEVELOPMENTHUMAN RESOURCESHUMAN RIGHTSINDIRECT IMPACTINEQUALITYINFLATIONINFLATIONARY PRESSURESINFORMATION SHARINGINFORMATION TECHNOLOGYINSTITUTIONAL INVESTORSINSURANCEINSURANCE INDUSTRYINSURANCE MARKETINSURANCE PENETRATIONINTANGIBLEINTEGRITYINTERNAL CONTROLINTERNAL CONTROLSINTERNATIONAL INSURANCEINTERNATIONAL STANDARDSINVESTIGATIONINVESTIGATIONSINVESTIGATIVE BODIESINVESTMENT FINANCEINVESTOR CONFIDENCEIRREGULAR INCOMEJUDICIAL SYSTEMJUSTICELANDHOLDERSLANDOWNERSLAW ENFORCEMENTLAWYERSLEADERSHIPLEADERSHIP CODELEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL SYSTEMLEGAL SYSTEMSLEVYLIBELLIFE INSURANCELIFE INSURANCE COMPANIESLIFE INSURANCE COMPANYLOANMARKET CAPITALIZATIONMARKET INTERMEDIARIESMEDIAMICROFINANCEMICROFINANCE INSTITUTIONSMINISTERMINISTERSMISAPPROPRIATIONMONEY LAUNDERINGMUTUAL LEGAL ASSISTANCENATIONAL INTEGRITYNATIONAL INTEGRITY SYSTEMSNEGOTIABLE INSTRUMENTSNOTARIESOFFICE HOLDERSOPEN ECONOMYPATRONAGEPAYMENT SERVICESPAYMENTS SERVICESPENALTIESPENALTYPEOPLESPOLICEPOLITICAL STABILITYPORTFOLIOSPOST OFFICEPROSECUTIONPROSECUTORPROSECUTORSPUBLIC FINANCEPUBLIC FINANCESPUBLIC FUNDSPUBLIC SPENDINGPUBLIC-PRIVATE PARTNERSHIPSRAPID ECONOMIC GROWTHREAL ESTATERECEIPTSREGISTRATION REQUIREMENTSREGULATORREGULATORSREGULATORY FRAMEWORKREMEDYREMITTANCEREMITTANCE SERVICEREMITTANCESRESERVESRETURNROBBERIESROBBERYRULE OF LAWSANCTIONSANCTIONSSAVINGSSECONDARY MARKETSSECURITIESSECURITIES EXCHANGESECURITIES MARKETSEIZURESETTLEMENTSETTLEMENT SYSTEMSHARE OF ASSETSSHAREHOLDERSSTOCK EXCHANGESTRUCTURAL PROBLEMSUPERVISORY AUTHORITIESSUPERVISORY POWERSTAXTAX EXEMPTIONTERRORISMTHEFTTRADINGTRANSACTIONTRANSPARENCYTREASURYTREATYTRUSTEESUNIONURBAN AREASVALUE TRANSFERVILLAGEVIOLENCEWIRE TRANSFERWorld Bank10.1596/12563