TIPNG urges PNG Government, Private Sector to respect the Independence of Bank of PNG

The Papua New Guinea Government and Private Sector have been urged to respect the independence of the Bank of PNG's Financial Analysis and Supervision Unit and allow the process to take its course. 

Transparency International PNG issued this call in light of comments on the actions taken by FASU in issuing a show course of notice to the Bank South Pacific Financial Limited.

The Financial Intelligence Unit of BPNG is an independent unit with its functions and powers specified under Anti - Money Laundering and Counter-Terrorist Financing Act 2015. 

TIPNG in a statement said the notice issued by FASU to BSP Financial Limited should be viewed as an action that is available to F -A- S- U as the responsible regulator. 

TIPNG , chairman Peter Aitsi says an independent and well-functioning AML CTF watchdog is significant to the PNG banking and finance sector as it acts as a shield to deflect attempts by corrupt individuals who may threaten businesses to breach these laws.

 Earlier this year, FASU  reported almost 10 thousand files to different law enforcement agencies, yet no action has been taken on these referrals, including prosecutions. 

Mr Aitsi says this is a big concern since PNG is scheduled for a mutual evaluation by the Asia - Pacific Group on Money Laundering next year. 

He says in order to avoid such outcomes, the government and private sector must actively encourage and support the efforts of an independent and effective regulator. 

NBC News / ONE PNG

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