Papua New Guinea on FATF Grey List, Risks Blacklisting Due to Money Laundering Concerns
Papua New Guinea (PNG) has been placed on the Financial Action Task Force's grey list due to strategic deficiencies in government oversight relating to money laundering. Prime Minister James Marape acknowledges the need for reform and assures investors that the government is working to improve the country's financial standing ahead of elections in 2027. However, approximately 30 banks have withdrawn investment intentions from the Papua LNG project amid concerns over PNG's stability and governance.
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Papua New Guinea is on the Financial Action Task Force's grey list due to strategic deficiencies in government oversight regarding money laundering. This status puts the country one step away from being blacklisted, which would deter global investors.
Prime Minister James Marape accepted FATF’s findings and stated the government would address identified issues before the 2027 elections. Despite assurances, about 30 banks have ruled out investments in the Papua LNG project due to perceived risks associated with PNG's governance and financial stability. The IMF has described PNG as a fragile state, noting an unstable social and political environment conducive to corruption.
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