BENEFICIAL OWNERSHIP REFORMS CRITICAL TO GOVERNMENT’S PLAN TO EXIT FATF GREY LIST—PSDI

Papua New Guinea should strengthen compliance with international beneficial ownership standards as part of its efforts to exit the Financial Action Task Force grey list.

This is according to a new report published recently by the Asian Development Bank’s Pacific Private Sector Development Initiative.

PSDI’s International Business Law Expert, Terry Reid said this report recommends for an enacting legislative change to mandate beneficial ownership reporting for companies and other high-risk entities, updating the foreign certification approval process, and undertaking a risk assessment for money laundering, terrorist financing, and legal persons.

Reid said the report also recommends that the PNG Investment Promotion Authority should expand its business entity registry to include a beneficial ownership register and fully implement the new Associations Act. 

This report draws on Asia/Pacific Group on Money Laundering Mutual Evaluation Reports and insights gained from PSDI through its extensive work in the Pacific.

Moreover, it was noted that complying with international beneficial ownership standards is essential for countries that rely on international banks to connect to global financial markets where strong compliance helps ensure that businesses can maintain access to banking services, keep borrowing costs affordable, and safeguards investor confidence.

PSDI is an ADB technical assistance program undertaken in partnership with the governments of Australia and New Zealand. It supports the ADB’s 14 Pacific developing member countries to improve the enabling environment for business and to achieve inclusive, private sector-led economic growth.