MORE PEOPLE “LESS-LIKELY” TO FEEL IMMEDIATE IMPACT OF GREY LIST

CAPTION: Executive Director of the Institute of National Affairs, Paul Baker

BY RAYLEEN WANJIMAN

EXECUTIVE Director of the Institute of National Affairs, Paul Baker says despite the grey listing most ordinary Papua New Guineans are unlikely to feel an immediate impact.

This is not the first time Papua New Guinea has been placed back under increased monitoring by the Financial Action Task Force [F.A.T.F] grey list on 13 February 2026.

The country was previously grey listed in 2014 but was removed in 2016 after introducing major reforms and law amendments including new legislation and the establishment of a Financial Intelligence Unit within the Bank of Papua New Guinea.

The decision follows a mutual evaluation in 2024, where FATF assessed PNG’s anti-money and identified gaps in the country’s financial laws, supervision and enforcement, leading FATF to classify PNG as a jurisdiction under increased monitoring which is refer to as grey list.

The decision will see PNG now work closely with international regulators to address weaknesses in its anti-money laundering and counter-terrorism financing systems.

He added that routine transactions such as regular exports and imports should continue normally although complex or unusual financial transactions may face additional scrutiny or checks.

Mr Barker was speaking during the Nasfund FM100 Talkback show last week.

Meanwhile, Opposition Leader James Nomane is raising concerns about the potential economic consequences of grey listing, warning that such a development could increase transaction costs, restrict capital flows and weaken investor confidence.

Under FATF monitoring, PNG must demonstrate progress in strengthening its financial system before it can be considered for removal from the grey list.