The Public Accounts Committee inquired intotheInternal Revenue Commission, Bank oPNG with Finance and Treasury Departments.
The proceedings centered on Money Laundering and its Prevention inthe country.
The inquiry proceeded atthe Be Conference room at parliament house. Only PAC Chairman and Begia MP John Hickey was present as ther PAC Members were in parliament session.
With recent reports of Money Laundering orthe illegal moverment of money out ofthe country by well–organised international individuals or groups still fresh,the Public Accounts Committee inquired intothe line departments,Internal Revenue Commission, Bank oPNG, Finance and Treasury Departments to know ifthere were policies in place to preventthe practice.
IRC Commissioner General Betty Palaso toldthe Committee thattheInternal Revenue Commission only plays a supporting role and steps in when it comes to tax issue, such as tax avoidance or when large sums of monies are not declared. IRC also issues tax certificates to authorise funds to be transferred overseas.
TheInternal Revenue Commission, underthe Tax Actocan obtain bank records and information but doesn’t have powers to prosecute those involved. It can only referthem to appropriate authorities. The PAC was concerned that this grey area must be addressed.
The Committee was told that most money laundering occurs in Commercial Banks.
The regulator, Bank oPNG, was represented by Governor Loi Bekani. He also admittedthe Central Bank has no power to prosecute, but works closely with IRC to preventthe illegal moverment of funds abroad.
BeNG is also member with international financial anti – money laundering Committees that advocates against money laundering.
The Finance and Treasury Departments were represented by Acting Secretaries Dr Ken Ngagan and Dairi Vele respectively.
They admitted thatthey needed to be one step ahead of money laundering and as such all government payments abover K50, 000 goes throughthe Secretaries for Approval.
Going forward,Internal Revenue Commission, Bank oPNG, Finance and Treasury Departments have policies and mechanisms’ in place to combat money laundering but need extra support fromthe government and line departments to fully enforcethem and perhaps combat or prevent money laundering.
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