Overview of the PNG Financial Sanctions regime Effective monitoring - - PowerPoint PPT Presentation

Overview of the PNG Financial Sanctions regime – Effective monitoring and supervision of Targeted Financial Sanctions

Presentation Outline

❑ Monitoring & Supervision of TF & PF

❑ Supervision by FASU ❑ Who is supervised by FASU?

❑ Supervision and monitoring of sanctions ❑ Initiatives undertaken ❑ Challenges ❑ Conclusion

Supervision

FASU in BPNG as sole Supervisor (S. 72 of

the AML/CTF Act 2015)

FASU supervises all financial institutions and DNFBPs in this national AML CTF regime

Bank of Papua New Guinea

Who is Supervised by FASU?

Financial Institutions (FIs) DNFBPs

• i. Commercial banks
• ii. Foreign subsidiaries of banks
• iii. Savings and Loans societies, Microbanks,

Microfinance companies

• iv. Life Insurance, General Insurance
• v. Superannuation funds
• vi. Investment banks
• vii. Mortgage companies, Finance companies
• viii. Money remitting services, money changers

i) real estate agent, ii) a motor vehicle dealer iii) a dealer in precious metals iv) a dealer in precious stones, v) a lawyer vi) notary public or other independent legal professional vii) a trust or company service provider viii) accounting practitioners/professional

There are two primary groups that are supervised which includes the FIs and DNFBPs

NB: DNFBP – Designated Non-Financial Businesses or Professions

Supervision and Monitoring

Financial institutions and DNFBPs are required to put in place effective procedures, policies and controls for –

• Monitoring the risks
• Complying with

customer due diligence requirements ✓ Ensuring that transactions carried

• ut on behalf of its

customers are consistent with the customer profile

Supervision & monitoring

2018/19 to current, 7

• nsites conducted on

FIs/DNFBPs: Focused on Transaction monitoring programs that covered sanctions screening. Most institutions use World Check and SWIFT sanctions screening tools. For non-banks, it was noted that they rely on tools provided by SWIFT/FASU

Effective supervision and monitoring of sanctions

Section 40 of the AML/CTF Act: FIs and DNFBPs must report to FASU any assets of a designated person or entity which it holds within 10 working days. The reporting form is prescribed and was issued in May 2019.

Initiatives Undertaken

Year # of awareness sessions Audience Places 2016 10 General Public, Schools, Radio awareness (in Tok Pisin), Business communities, FIs, DNFBPs, LEAs, NCC member agencies *FASU collaborates with Department

• f Justice & Attorney General, Royal

PNG Constabulary, Investment Promotion Authority, PNG Customs, PNG Law Society, Certified Practising Accountants, Real Estate Industry Association, Transparency International, Chamber of Commerce, etc

Port Moresby (x6), Lae (x1), Madang (x1) Vanimo (x1), Kokopo (x1) 2017 19 Port Moresby (x11), Lae (x5) Kokopo (x2), Madang (x1) 2018 13 Port Moresby (x3), Lae (x3), Madang (x1) Wewak (x1), Vanimo (x1), Goroka (x1) Kavieng (x1), Kimbe (x1), Kokopo (x1) June 2019 8 Port Moresby (x4), Lae (x3),

• Mt. Hagen (x1)

Initiatives Undertaken

Year Initiative Purpose Outcomes 2016 AML/CFT module on KATS

Filter transactions by imbedding lists on the system/KATS TF & PF risks low but must be watched closely

• MoUs, (Customs, Police,

Immigration, Fisheries & Forest Authorities)

• Guidance
• Compliance Rule and CDD Advisory

notes for FIs & DNFBPs developed and issued

• Intelligence database capacity
• Interpol database
• UN subscription on list updates for

dissemination to FIs and DNFBPs and to relevant agencies and Public.

False positives. Can verify if FIs mostly banks are using screening tools. Volumes of transactions can be compared.

2017 NRA findings Awareness, training and capacity building. Watch media and monitor open source 2017- 19 Development

• f Regulatory

tools National Maritime Authority engagement/shipping register.

Conclusion

❑ The designated TF and PF supervision mandate needs to be explicit. FASU supervises under border AML/CFT Act. ❑ Important to continue raising awareness and assisting the smaller FIs and DNFBPs in particular in terms of transaction monitoring and sanctions screening ❑ The SOP developed under UN Sanctions Act needs good awareness with all relevant stakeholders. ❑ Sanctions secretariat function must be resourced to administer the Act.

❑ Some strategic decisions to make to demonstrate effectiveness.

QUESTIONS?

Contact FASU

Postal Address: Financial Analysis and Supervision Unit Bank of Papua New Guinea P O Box 121 PORT MORESBY National Capital District Papua New Guinea Telephone: 322 7147 Facsimile: 322 7239 Email: fasu@bankpng.gov.pg Website: www.bankpng.gov.pg/about-us/amlcft-anti- money-laundering/