Papua New Guinea Country Summary

FATF Status

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

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.

Papua New Guinea faces significant challenges related to crime and corruption, which hinder governance and social stability. The prevalence of organized crime, including human trafficking, arms trafficking, and environmental crimes, is exacerbated by pervasive corruption among public officials and weak law enforcement capabilities, leading to a cycle of impunity and limited resilience against criminal activities.

Papua New Guinea (PNG) stands as the largest economy in the Pacific Islands, presenting significant trade and investment opportunities, particularly in the petroleum and mining sectors. The government projects a steady economic growth rate of 5.0 percent, alongside an inflation rate of the same percentage, while ongoing investments in infrastructure and regulatory reforms aim to create a more favorable business environment. Despite challenges such as a recent decline in foreign direct investment and concerns over environmental and social governance, PNG's commitment to enhancing its investment climate, including the establishment of Special Economic Zones and a focus on renewable energy, underscores its potential as an attractive destination for international investors.