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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.