The government has established a National Coordinating Committee on anti-money laundering and Counter Terrorist Financing.
Money laundering isthe process of cleaning dirty money throughthe banking and financing institutions.
There are concerns this criminal activity could ruinthe country.
Secretary for the Department of Justice and Attorney General Lawrence Kalinoe isthe co-Chair ofthe Committee.
Kalinoe’sain PNG anti-money laundering and country terrorism financing systems does not meet international standards set bythe Financial Action Task Force.
As a result ofthe findingsPNG is onthe path to a FATF review that could ultimately result in PNG being black listed, which would raisethe cost of financial transactions and is likely to have serious ramifications forPNG rsquo;s financial sector and broader economy.
The department of Justice and Attorney General with assistance from Australia’s’Strongim Gavman Program is currently reviewingthe Proceeds of Crime Act 2005 to improver and strenthen its operations.
Some positive steps already taken to minimizethe possibility of banking fraud include, requiring of proper identification when opening accounts and clearing cheques, and FIU issued guidelines to put in place a system of checks before paying government cheques.
Alice Thomas, National EMTV News