Port Moresby — Prime Minister James Marape has moved to reassure the nation that Papua New Guinea’s grey listing status will not cripple the economy, saying the Government is fully committed to addressing the concerns raised by the Financial Action Task Force (FATF).
Speaking amid growing public debate, Prime Minister Marape said PNG’s inclusion on the FATF grey list relates mainly to weaknesses in anti money laundering and counter terrorism financing (AML/CFT) frameworks, and not because the country is unsafe or lawless.
“The grey listing does not mean Papua New Guinea is a failed state or that our financial system is collapsing,” Marape said.
“It simply means we must strengthen our regulatory and enforcement systems to meet international standards.”
The Prime Minister said the Government had already taken decisive steps to correct the identified deficiencies, including strengthening coordination between key agencies such as the Bank of Papua New Guinea, the Financial Analysis and Supervision Unit (FASU), law enforcement agencies and relevant regulators.
He said legislative reforms, improved enforcement mechanisms and capacity building within regulatory institutions were already underway, with clear timelines set to meet FATF requirements.
Prime Minister Marape also assured the business community and international partners that PNG remains open for business, adding that banking services, foreign investments and trade activities will continue without disruption.
“Our banks remain strong, our economy remains resilient and our commitment to international financial integrity is firm,” he said.
“We are working responsibly to exit the grey list as soon as possible.”
Marape urged the public and political leaders to avoid spreading misinformation and fear, warning that exaggerated claims could unnecessarily undermine investor confidence and public trust.
He said the Government’s focus was on delivering reforms transparently and working closely with international partners to restore full compliance.
“We accept the challenge, and we will fix it,” the Prime Minister said.
“Papua New Guinea will come out stronger with better systems that protect our people and our economy.”
PNG was placed on the FATF grey list after an assessment found gaps in the country’s AML/CFT enforcement and supervisory mechanisms.
The Government has since committed to an action plan aimed at addressing those concerns and securing removal from the list.