Papua New Guinea faces imminent placement on the Financial Action Task Force (FATF) “Grey List” by 2026, a move that Bank of Papua New Guinea Governor Elizabeth Genia says will have serious implications for investment, trade and the cost of doing business.
Speaking at the Port Moresby Chamber of Commerce and Industry (POMCCI) Breakfast Meeting on 6 August at the Royal Papua Yacht Club, Genia confirmed that the listing is now almost certain.
“Based on the feedback we have received, we can say with a high degree of confidence, close to 100% certainty, that Papua New Guinea will be added to the FATF Grey List in February 2026,” she said.
The decision follows a mutual evaluation by FATF in October 2023, which triggered a 12-month observation period ending in October 2025. A post-observation report will then be submitted ahead of a formal review in January 2026.
Genia admitted that “it is not something that they had hoped for” but stressed the country’s priority now was constructive and transparent engagement with the FATF.
She underlined the potential economic fallout of grey listing, warning that it would undermine investor confidence, disrupt international trade and increase the cost of doing business.
“Grey listing affects us all. Whether you are a commercial bank, a lawyer, an accountant, a real estate agent or simply sending money to your family, compliance with our Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act is critical to protecting the integrity of our financial system,” she said.
The risks are not limited to the financial sector. Key vulnerabilities for PNG include corruption and misuse of government funds, illegal fishing and tax offences, limited institutional capacity to prosecute money laundering and weak supervision of non-financial professions such as lawyers, accountants, real estate agents, car dealers and gold dealers.
The country also struggles with outdated risk assessments, limited asset recovery and insufficient cooperation with international jurisdictions.
To counter these threats, BPNG is co-chairing the National Coordinating Committee (NCC) with the Department of Justice and Attorney General. This body unites 22 government agencies in a national effort to respond to FATF’s findings.
In support of this, the government has brought in international expertise. Rick McDonald of McDonald Nair Consultants, Canada—one of the architects of the FATF mutual evaluation framework—has been engaged to advise PNG on strategies to exit the Grey List as quickly as possible.
The POMCCI breakfast also featured a panel discussion with senior experts, including Wilson O’Neill (Bank of PNG), Karen McKinney (Tax Advisor, UK-PNG), Leo Kamara (Chief Risk Officer, Credit Bank) and Herbert Williams (Managing Director, Deloitte). The panel assessed PNG’s progress, acknowledged ongoing challenges and stressed the urgency of coordinated reforms to protect businesses from the damaging effects of grey listing.
Governor Genia closed with a call for national unity in addressing the challenge.
“Our response must be informed, open and transparent. Compliance is not just for banks or regulators—it is a national responsibility. The integrity of our financial system relies on all of us.”
