By GINNAH MINI
JUSTICE Minister and Attorney General Pila Niningi has introduced three bills in Parliament aimed at strengthening Papua New Guinea’s laws against money laundering and terrorist financing.
The proposed amendments are intended to address weaknesses identified in PNG’s legal framework during its second mutual evaluation by the Financial Action Task Force (FATF) and bring the country’s anti-money laundering and counter-terrorist financing (AML/CTF) system in line with international standards.
The three bills are the Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Bill 2026, the Criminal Code (Money Laundering and Terrorist Financing) (Amendment) Bill 2026, and the United Nations Financial Sanctions (Amendment) Bill 2026.
Niningi said the first bill would strengthen “know your customer” procedures for financial institutions reporting to the Financial Analysis and Supervision Unit.
The Criminal Code amendment would expand existing money laundering and terrorist financing offences to ensure they comply with FATF standards.
The United Nations Financial Sanctions amendment would strengthen the legal framework for imposing financial sanctions on individuals and entities linked to terrorism, terrorist financing and other matters of international concern.
“Money laundering and terrorist financing are global phenomena—they are highly lucrative financial crimes that flourish in the face of weak laws and weak enforcement,” Niningi said.
He said organised criminal groups and individuals were exploiting loopholes in PNG’s legal framework, undermining the stability and integrity of the country’s financial system.
Niningi said PNG’s grey-listing by FATF reflected strategic deficiencies in its AML/CTF system.
“PNG is given until September 2026 to pass these suites of legislative amendments or face the prospect of sanctions associated with being blacklisted,” he said.
He said passing the amendments would help address the identified deficiencies and demonstrate PNG’s commitment to working with the international community to combat financial crimes.
Niningi said the passage of the bills would be a key milestone in PNG’s efforts to come off the FATF grey list.