Latest news with #JamesMarape
Scoop
3 days ago
- Business
- Scoop
PNG Faces Deadline For Fixing Issues With Money Laundering And Terrorist Financing
Article – RNZ Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing systems or face repercussions. Scott Waide, RNZ Pacific PNG correspondent -Analysis Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing (AML/CTF) systems or face the severe repercussions of being placed on the Financial Action Task Force's (FATF) 'grey list'. The FATF has imposed an October 2025 deadline, and the government is scrambling to prove its commitment to global partners. Speaking in Parliament, Prime Minister James Marape said Treasury Minister, Ian Ling-Stuckey has been given the responsibility to lead a taskforce to fix PNG's issues associated with money laundering and terrorist financing. 'I summoned all agency heads to a critical meeting last week giving them clear direction, in no uncertain terms, that they work day and night to avert the possibility of us getting grey listed,' Marape said. 'This review comes around every five years. 'We have only three or four areas that are outstanding that we must dispatch forthwith.' PNG is no stranger to the FATF grey list, having been placed under increased monitoring in 2014 before successfully being removed in 2016. However, a recent assessment by the Asia Pacific Group on Money Laundering (APG) highlighted ongoing deficiencies, particularly in the effectiveness of PNG's AML/CTF regime. While the country has made strides in establishing the necessary laws and regulations (technical compliance), the real challenge lies in PNG's implementation and enforcement. The core of the problem, according to analysts, is a lack of effective prosecution and punishment for money laundering and terrorism financing. High-risk sectors such as corruption, fraud against government programmes, illegal logging, illicit fishing, and tax evasion, remain largely unchecked by successful legal actions. Capacity gaps within key agencies like the Royal Papua New Guinea Constabulary and the Office of the Public Prosecutor have been cited as significant hurdles. Recent drug hauls have also highlighted existing flaws in detection in the country's financial systems. The implications of greylisting are far-reaching and potentially devastating for a developing nation like PNG, which is heavily reliant on foreign investment and international financial flows. Deputy Opposition leader James Nomane warned in Parliament that greylisting 'will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues'. If PNG is greylisted, the immediate economic fallout could be substantial. It would signal to global financial institutions that PNG carries a heightened risk for financial crimes, potentially leading to a sharp decline in foreign direct investment. Critical resource projects, including Papua LNG, P'nyang LNG, Wafi-Golpu, and Frieda River Mines, could face delays or even be halted as investors become wary of the increased financial and reputational risks. Beyond investment, the cost of doing business in PNG could also rise. International correspondent banks, vital conduits for cross-border transactions, may de-risk by cutting ties or scaling back operations with PNG financial institutions. This 'de-risking' could make it more expensive and complex for businesses and individuals alike to conduct international transactions, leading to higher fees and increased scrutiny.
Scoop
3 days ago
- Business
- Scoop
PNG Faces Deadline For Fixing Issues With Money Laundering And Terrorist Financing
Scott Waide, RNZ Pacific PNG correspondent -Analysis Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing (AML/CTF) systems or face the severe repercussions of being placed on the Financial Action Task Force's (FATF) "grey list". The FATF has imposed an October 2025 deadline, and the government is scrambling to prove its commitment to global partners. Speaking in Parliament, Prime Minister James Marape said Treasury Minister, Ian Ling-Stuckey has been given the responsibility to lead a taskforce to fix PNG's issues associated with money laundering and terrorist financing. "I summoned all agency heads to a critical meeting last week giving them clear direction, in no uncertain terms, that they work day and night to avert the possibility of us getting grey listed," Marape said. "This review comes around every five years. "We have only three or four areas that are outstanding that we must dispatch forthwith." PNG is no stranger to the FATF grey list, having been placed under increased monitoring in 2014 before successfully being removed in 2016. However, a recent assessment by the Asia Pacific Group on Money Laundering (APG) highlighted ongoing deficiencies, particularly in the effectiveness of PNG's AML/CTF regime. While the country has made strides in establishing the necessary laws and regulations (technical compliance), the real challenge lies in PNG's implementation and enforcement. The core of the problem, according to analysts, is a lack of effective prosecution and punishment for money laundering and terrorism financing. High-risk sectors such as corruption, fraud against government programmes, illegal logging, illicit fishing, and tax evasion, remain largely unchecked by successful legal actions. Capacity gaps within key agencies like the Royal Papua New Guinea Constabulary and the Office of the Public Prosecutor have been cited as significant hurdles. Recent drug hauls have also highlighted existing flaws in detection in the country's financial systems. The implications of greylisting are far-reaching and potentially devastating for a developing nation like PNG, which is heavily reliant on foreign investment and international financial flows. Deputy Opposition leader James Nomane warned in Parliament that greylisting "will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues". If PNG is greylisted, the immediate economic fallout could be substantial. It would signal to global financial institutions that PNG carries a heightened risk for financial crimes, potentially leading to a sharp decline in foreign direct investment. Critical resource projects, including Papua LNG, P'nyang LNG, Wafi-Golpu, and Frieda River Mines, could face delays or even be halted as investors become wary of the increased financial and reputational risks. Beyond investment, the cost of doing business in PNG could also rise. International correspondent banks, vital conduits for cross-border transactions, may de-risk by cutting ties or scaling back operations with PNG financial institutions. This "de-risking" could make it more expensive and complex for businesses and individuals alike to conduct international transactions, leading to higher fees and increased scrutiny.
RNZ News
4 days ago
- Business
- RNZ News
PNG faces deadline for fixing issues with money laundering and terrorist financing
Photo: -Analysis Papua New Guinea has five months remaining to fix its anti-money laundering and counter-terrorist financing (AML/CTF) systems or face the severe repercussions of being placed on the Financial Action Task Force's (FATF) "grey list". The FATF has imposed an October 2025 deadline, and the government is scrambling to prove its commitment to global partners. Speaking in Parliament, Prime Minister James Marape said Treasury Minister, Ian Ling-Stuckey has been given the responsibility to lead a taskforce to fix PNG's issues associated with money laundering and terrorist financing. "I summoned all agency heads to a critical meeting last week giving them clear direction, in no uncertain terms, that they work day and night to avert the possibility of us getting grey listed," Marape said. "This review comes around every five years. "We have only three or four areas that are outstanding that we must dispatch forthwith." PNG is no stranger to the FATF grey list, having been placed under increased monitoring in 2014 before successfully being removed in 2016. However, a recent assessment by the Asia Pacific Group on Money Laundering (APG) highlighted ongoing deficiencies, particularly in the effectiveness of PNG's AML/CTF regime. While the country has made strides in establishing the necessary laws and regulations (technical compliance), the real challenge lies in PNG's implementation and enforcement. The core of the problem, according to analysts, is a lack of effective prosecution and punishment for money laundering and terrorism financing. High-risk sectors such as corruption, fraud against government programmes, illegal logging, illicit fishing, and tax evasion, remain largely unchecked by successful legal actions. Capacity gaps within key agencies like the Royal Papua New Guinea Constabulary and the Office of the Public Prosecutor have been cited as significant hurdles. Recent drug hauls have also highlighted existing flaws in detection in the country's financial systems. The implications of greylisting are far-reaching and potentially devastating for a developing nation like PNG, which is heavily reliant on foreign investment and international financial flows. Deputy Opposition leader James Nomane warned in Parliament that greylisting "will severely affect the economy, investor confidence, and make things worse for Papua New Guinea with respect to inflationary pressures, the cost of imports, and a whole host of issues". If PNG is greylisted, the immediate economic fallout could be substantial. It would signal to global financial institutions that PNG carries a heightened risk for financial crimes, potentially leading to a sharp decline in foreign direct investment. Critical resource projects, including Papua LNG, P'nyang LNG, Wafi-Golpu, and Frieda River Mines, could face delays or even be halted as investors become wary of the increased financial and reputational risks. Beyond investment, the cost of doing business in PNG could also rise. International correspondent banks, vital conduits for cross-border transactions, may de-risk by cutting ties or scaling back operations with PNG financial institutions. This "de-risking" could make it more expensive and complex for businesses and individuals alike to conduct international transactions, leading to higher fees and increased scrutiny.
RNZ News
22-05-2025
- Business
- RNZ News
PNg government on track to remove GST on 13 essential items
Photo: RNZ Pacific/ Koroi Hawkins Papua New Guinea Prime Minister James Marape has said his government is on track to remove the Goods and Services Tax (GST) on 13 essential household items from 1 June. This was a commitment made in last year's budget. Marape has commended the Internal Revenue Commission for its efficiency in implementing government policy. He specifically acknowledged IRC Commissioner-General Sam Koim and his team, "Sam Koim and his team have shown that when a policy becomes law, departments must act." PNG Prime Minister James Marape said the project ideas were possible mid- or long-term projects. (Reuters: Rungroj Yongrit/Pool) Photo: Reuters/Rungroj Yongrit/Pool Marape emphasised that these tax reforms form part of a broader package of relief measures introduced by his government in recent years to support struggling families. "These include removing project fees from schools, paying tuition fees for elementary to secondary education, supporting higher education through the Higher Education Loan Programme (HELP), and offering scholarships for high-performing students to study overseas. We've also provided tax relief by raising the income threshold for non-taxable earnings to K20,000," he said. He says that next year, the government will remove 10 percent GST from first-time home buyers. Marape said these measures are about helping real people - especially those in the informal sector, in rural areas, and families earning subsistence or low incomes.
Scoop
21-05-2025
- Politics
- Scoop
Report Highlights Widespread Abuse Of Logging Permits In Papua New Guinea
The community advocacy organisation ACT NOW is calling for action on illegal logging in the country., RNZ Pacific Senior Journalist New Guinea Island is home to one of the world's most important remaining stands of tropical rainforest. However, for many years, it has been under assault by illegal loggers and a community advocacy organisation in Papua New Guinea is calling for action to stop it. ACT NOW, with Australian watchdog Jubilee Australia, has produced a report called The FCA Logging Scandal, which details the abuse of a PNG government scheme aimed at encouraging the clearance of small patches of forest for agriculture. Prime Minister James Marape, in his inaugural address to the national parliament on 9 August 2022, stated that 'we are committed to stopping all round log exports by 2025'. 'We can no longer tolerate this wrongdoing happening for a very long time under our noses,' Marape said. 'We are also exploring state market options for logs that are earmarked for the state, which will give us the volume to move into downstream processing. This level of intervention is likely to also shine a spotlight on the challenges of the sector and what needs to happen to it, to stimulate growth.' However, that promise has yet to be fulfilled. RNZ Pacific spoke with ACT NOW campaign manager Eddie Tanago. (This transcript has been edited for brevity and clarity). Eddie Tanago: These aren't new issues. We've been talking about these issues. The recent being the Forest Clearing Authority (FCA), which has been subject to abuse for quite a long time now, and it accounts for a third of total log exports coming out from Papua New Guinea. The concerns have been raised numerous times, and it's quite frustrating that there's really nothing tangible done to address it. The recent report that we had launched actually demands for action, not only by PNG authorities, but by overseas agencies, or those that are involved in the supply chain, and those who actually buying from Papua New Guinea. Ninety percent of exports from Papua New Guinea go to China, it's right that China also acts on ensuring compliance from the sources that it is buying the logs from, and abuses and the issues of illegal logging, human rights abuse, and the harm to the environment has been in existence for as long as Papua New Guinea has been a state and it is still an issue. Don Wiseman: Yes, let's look at these. So these Forest Clearance Authorities, they're there to primarily encourage agriculture, but that often doesn't happen. ET: Exactly, and what has been uncovered in this recently published report, is that, FCAs is meant for clearance for agriculture or other small clearing or land use, but the evidence that we have collected in the series of reports that we have documented, and the current one shows that logging has been happening, and we're talking about large scale forest clearance. We see that in normal logging operations and under different type of licence. For this case, we have seen logging companies who are in the excuse of doing agriculture, taking up huge volumes of logs. And logs worth millions have been shipped out or exported. This is a concern. It's a direct breach of the terms of the licence. DW: When they go into an area, they're taking a far bigger area than would ever be required for whatever agricultural project they're doing. ET: We have reports and evidence that shows that logging is actually happening in large scale. Not only that, but we have satellite imagery that shows that logging are actually happening beyond the boundaries that it's supposed to happen. We have what's written on the paper. It's different to what's actually happening on the ground. And as I said, this is very concerning. We have the PNG Forest Authority and the board having announced a moratorium and promises to have the audit reports on the FCA is audited and have a report published. And this is like two years ago, this hasn't happened. DW: So no moratorium? ET: There is an announced moratorium. There's a new one being announced. As it is now we are not able to verify if that really has existed, because, you know, two years ago they promised an audit, and the audit report would have been made public. We don't have that report, or it's not even publicly available that we have cited. DW: Who do you blame? Who do you blame for these, these failings? ET: T he regulatory authority, which is the PNG Forest Aauthority, it is not able to handle these issues. While we are not able to handle these kind of issues, logs have been shipped out from these areas. We have people's rights who have been suppressed, or we have logs that are taken out illegally. We have the proceeds from these logs that are going out and sold in the markets. So this whole lot of issues that are still outstanding while logging is being allowed to continue under this FCAs. DW: You've put out a report and you've made some recommendations. What do you want to see happen? ET: As I said earlier on, the report is out there, and this is an issue that's not only for Papua New Guinea and not only for PNG Forest Authority, but those in the whole picture. We had a set of recommendations that accompany the report, and the number one is that we want the government to suspend all log exports from the FCA series until an independent, transparent and public inquiry is held to look into the legality of these existing FCAs. And number two is that we want the National Forest Board to extend the moratorium on the new FCAs until a government inquiry has been conducted, [and] recommendations have been implemented. But also we wanted audit reports publicly made available. We also want the police fraud in the United Nations Office of Drugs and Crime, and Interpol, to identify the criminal laws that may have been broken in the submission and the approval of the fraudulent FCA projects. Commercial banks also play an important part in this transaction or in this in this process. We also want the commercial banks to identify any customers or logging companies that are linked to FCA logging operations. And we will want a full compliance with all anti-money laundering legislation and the bank environmental social responsibilities are complied with. DW: You've called for overseas timber buyers to be a whole lot more vigilant. How would they know – if the wood goes to China and then, I guess, comes out to Western countries as furniture and whatever. How would you know? ET: That's a very good question, and that is also a very big hindrance. There has to be some kind of system put in place, where it's traceable when it goes to jurisdictions like China. There has to be some kind of message put in place between Papua New Guinea, and maybe China, to ensure that there's transparency. So the buyer, or the users of the end products, know exactly the sources the timbers are coming from and where people's rights are not being infringed, where people are not being made landless, where people are not being deprived of their rights to have access to the environment and their land. These kind of things have to be put in place properly, so that those in the supply and the demand chain, and the end users, are able to trace back to the sources of timber to ensure that people's rights are not infringed.
