| Overview : Article 14 of the United Nations Convention against Corruption, specifically relates to the prevention of money laundering. Specifically Article 14 states “Each State Party shall institute a comprehensive domestic regulatory and supervisory regime for banks and non-bank financial institutions, including natural or legal persons that provide formal or informal services for the transmission of money or value and, where appropriate, other bodies particularly susceptible to money-laundering, within its competence, in order to deter and detect all forms of money-laundering, which regime shall emphasize requirements for customer and, where appropriate, beneficial owner identification, record-keeping and the reporting of suspicious transactions.” Papua New Guinea was the first Pacific Island Country to accede/ratify UNCAC in July 2007 Papua New Guinea is also a long standing member of the Asia-Pacific Group on Money Laundering (APGML). APGML is a regional body mandated to assist countries in the Asia Pacific region to strengthen their anti-money laundering and counter financing of terrorism (AML/CFT) regimes. This is achieved in a number of ways, including through member countries’ effective participation in the FATF[1] standard-setting process and implementation of those standards. AML/CFT initiatives increase financial integrity and are central to increasing economic growth as an avenue for development and poverty reduction. By detecting and disrupting flows of illicit funds, countries can increase investor confidence and create an attractive environment for foreign direct investment. AML/CFT initiatives also contribute to effective governance policies and institutions that support a functioning economy, and help to prevent and combat corruption by stopping the flow of profits from corruption, and ultimately reducing the amount of corruption related money laundering occurring in a jurisdiction and region. In 2010, PNG’s AML/CFT regime was assessed against the 40+9 FATF Recommendations through the APGML mutual evaluation process. Significant deficiencies were identified in the Mutual Evaluation Report and among other recommendations; it was recommended that PNG improve its AML/CFT regulatory and supervision system. These recommendations are identified as priorities in the PNG Strategic Implementation Plan. In February 2014, PNG agreed an action plan with FATF in which it committed to implementing a comprehensive AML/CFT regulation and supervision regime by August 2015. PNG has identified implementation of its FATF action plan relating to AML/CFT Regulation and Supervision as a priority, with commitments made at the highest levels by Bank of Papua New Guinea (BPNG) and the PNG Prime Minister the Hon. Peter O’Neill, that PNG will undertake the reforms as required by the Action Plan, and in accordance with domestic anti-corruption and anti-money laundering strategies. The Government of PNG has since established an AML/CFT unit in the Bank of PNG to work with the FATF and APG to address its strategic AML/CFT deficiencies and work on implementing its action plan to address these issues. | 
