Anti-Money Laundering and Counter Terrorist Financing Act 2015 (AML/CTF Act 2015): This Act provides the legal basis for identifying, freezing, and confiscating assets related to money laundering and terrorist financing. It obligates financial institutions and designated non-financial businesses and professions (DNFBPs) to implement AML/CTF measures. While it pre-dates specific crypto regulation, its broad definitions and principles are applied to virtual asset activities where deemed appropriate by regulators.

Note: Finding a publicly accessible, definitive online link for the most current version of PNG legislation can sometimes be challenging. Often, these are available through official government gazettes or legal databases.

Reference: Anti-Money Laundering and Counter Terrorist Financing Act 2015 (No. 4 of 2015). It can often be found on legal databases like PACLII (Pacific Legal Information Institute): http://www.paclii.org/pg/legis/consol_act/amlact2015408/ (This link may lead to an older version, direct legislative publication is preferred).

Terrorism Act 2002 (and subsequent amendments): This Act provides specific provisions related to terrorist financing and the designation of terrorist entities.

Reference: Terrorism Act 2002. Again, often available via PACLII or official sources.

Financial Analysis and Supervision Unit (FASU): As the FIU, FASU issues guidance, receives suspicious transaction reports (STRs), and disseminates information regarding designated persons and entities subject to sanctions.

Reference: FASU Website (part of BPNG): https://www.bankpng.gov.pg/financial-analysis-and-supervision-unit-fasu/

Bank of Papua New Guinea (BPNG) Circulars and Statements: BPNG, as the central bank, has the authority to regulate financial services. While it has expressed caution regarding cryptocurrencies, it is working towards a regulatory framework for virtual assets. Any entities providing virtual asset services are expected to comply with existing AML/CTF obligations.

Reference: BPNG Public Statements/Press Releases (monitor for specific crypto guidance): https://www.bankpng.gov.pg/media-releases/

Designated Person/Entity Screening: VASPs must screen their customers (both at onboarding and on an ongoing basis) against the UN Consolidated Sanctions List, which includes individuals and entities designated under various UN sanctions regimes (e.g., terrorism, proliferation, specific country regimes).

Asset Freezing: If a VASP identifies that it holds assets (including virtual assets) belonging to a designated person or entity, it must immediately freeze those assets and report the match to FASU.

Prohibition on Dealing: VASPs are prohibited from making funds or economic resources available to, or for the benefit of, designated persons or entities.

Suspicious Transaction Reporting (STR): Any transaction involving designated persons, or transactions suspected of being related to money laundering or terrorist financing, must be reported to FASU.

Legal Basis: The AML/CTF Act 2015 mandates compliance with international obligations, including UN sanctions. FASU, under this Act, is responsible for disseminating UN sanctions lists to reporting entities and overseeing compliance.

Reference: UN Security Council Sanctions Committees Website (for consolidated lists): https://www.un.org/securitycouncil/sanctions/information

FASU typically publishes advisories when new UN designations are made.

Extraterritorial Reach: OFAC and EU sanctions can have extraterritorial effects, particularly if transactions involve:

US persons (citizens, residents, entities, or their foreign branches).

The US financial system (e.g., US dollar clearing).

Correspondent Banking Relationships: PNG financial institutions (and potentially VASPs dealing with them) rely on correspondent banking relationships with US and European banks, which impose their own OFAC/EU compliance requirements.

Reputational Risk: Failing to comply with major international sanctions regimes like OFAC or EU can lead to severe reputational damage, de-risking by international partners, and exclusion from global financial systems.

Obligations: VASPs in PNG that engage in international transactions, particularly those involving US dollars or counterparties in the US/EU, should screen against:

OFAC Specially Designated Nationals (SDN) List: https://www.treasury.gov/ofac/downloads/sdn.txt

EU Consolidated Financial Sanctions List: https://www.sanctionsmap.eu/

Who: Any entity offering services related to virtual assets that falls under the scope of "financial institutions" or "designated non-financial businesses and professions" (DNFBPs) as defined by the AML/CTF Act 2015, or is otherwise regulated by BPNG/FASU. Even if not formally regulated as such yet, prudent business practice dictates compliance.

OFAC SDN List (for US nexus/best practice).

EU Consolidated Financial Sanctions List: https://www.sanctionsmap.eu/

Any other relevant sanctions lists from jurisdictions where the VASP operates or has significant business ties.

Onboarding: Before establishing any business relationship or conducting transactions.

Ongoing Monitoring: Regular screening of existing customer bases against updated lists.

Per-Transaction Screening: For high-risk transactions or as part of a risk-based approach.

How: Using reliable screening software or services that keep lists updated and provide auditable results.

Prohibited Jurisdictions: VASPs are generally prohibited from dealing with individuals or entities located in or connected to comprehensively sanctioned jurisdictions (e.g., North Korea, Iran, Syria, Cuba, certain regions of Ukraine/Russia) where those sanctions apply.

High-Risk Jurisdictions: VASPs are expected to apply enhanced due diligence to transactions involving countries identified by FATF or other international bodies as high-risk for money laundering and terrorist financing. FASU may issue guidance on such jurisdictions.

For Individuals: Imprisonment, substantial fines.

For Corporations: Significant monetary penalties (fines) that can be millions of Kina, and potential de-registration or loss of operating license.

For Directors/Officers: Personal liability, including fines and imprisonment.

Terrorism Act 2002: Severe penalties, including long-term imprisonment for financing terrorism.

Reputational Damage: Significant harm to business reputation, making it difficult to operate internationally or attract customers.

De-risking: International financial partners may sever relationships, effectively cutting off access to global financial systems.

Reference: Specific penalty provisions can be found in the respective Acts, particularly Part 9 (Enforcement and Penalties) of the AML/CTF Act 2015.

Implement UN Sanctions: FASU and BPNG are responsible for enforcing UN Security Council Resolutions, which list sanctioned individuals and entities. These lists are applied universally, meaning any assets (fiat or virtual) belonging to these designated persons/entities must be frozen.

Follow FATF Recommendations: PNG's regulatory developments for VASPs will be guided by FATF Recommendation 15 (New Technologies) and Recommendation 6 (Targeted Financial Sanctions), ensuring that VASPs are subject to the same sanctions obligations as traditional financial institutions.

Investment/Security Tokens: Tokens that represent traditional financial instruments such as equity (ownership stakes), debt (loans), or rights to future profits, dividends, or revenue streams from an underlying enterprise. These are almost certainly considered securities.

Asset-Backed Tokens: Tokens representing fractional ownership of real-world assets (e.g., real estate, art, commodities) or financial assets (e.g., shares, bonds) would be considered securities, as they derive their value from the underlying security/asset.

Certain Stablecoins: While a stablecoin designed purely for transactional utility might not be a security, those that offer yield, profit-sharing, or are part of an investment scheme (e.g., lending platforms promising returns) would likely fall under securities regulation.

Prospectus Requirements: Issuers would generally need to prepare and register a detailed prospectus with the SCPNG, providing comprehensive information about the token, the project, the issuer, risks, and financial details, before offering the tokens to the public.

Licensing: Issuers, promoters, and distributors of securities tokens would need to be licensed by the SCPNG to conduct such activities. This includes investment advisors, brokers, and capital market participants.

Corporate Governance & Reporting: Companies issuing security tokens would be subject to ongoing corporate governance, financial reporting, and disclosure obligations as specified by the Capital Market Act.

Exemptions: Traditional securities law exemptions (e.g., private placement exemptions for sophisticated investors, small offering exemptions, or offerings not deemed a "public offering") might apply, but specific guidance for crypto tokens is absent. Issuers would need to seek explicit clarification from the SCPNG.

Regulated Exchanges: Secondary trading would ideally need to occur on a licensed securities exchange (e.g., the PNGX National Stock Exchange, if it were to list digital assets) or through licensed brokers. Operating an unlicensed exchange for security tokens would be illegal.

Market Conduct Rules: All secondary trading would be subject to market conduct rules, including prohibitions against market manipulation, insider trading, and other abusive practices.

AML/CFT: Any platform facilitating secondary trading, regardless of whether it's classified as a securities exchange, would be subject to strict AML/CFT obligations under the Anti-Money Laundering and Counter-Terrorist Financing Act 2015, enforced by the Financial Analysis and Supervision Unit (FASU) and BPNG.

Nascent Market: The cryptocurrency market in PNG is relatively small compared to more developed economies.

Regulatory Caution: PNG's regulators have adopted a stance of extreme caution, primarily issuing warnings rather than engaging in specific enforcement for unlicensed crypto offerings.

Lack of Specific Legislation: Without explicit crypto legislation, enforcement would fall under existing general laws, which may not always be framed as "crypto enforcement."

Focus on Warnings: The BPNG has historically focused on issuing public warnings about the risks associated with cryptocurrencies, including their unregulated nature, price volatility, and potential for scams.

Seek injunctions to prevent further illegal offerings.

Refer cases for criminal prosecution for fraud or unlicensed activities.

The Capital Market Act 1998: This is the primary legislation governing securities and capital markets in PNG. You would typically find this on the Pacific Islands Legal Information Institute (PacLII) website or via the PNG National Parliament/Department of Justice and Attorney General sites.

Direct URL for Act text is often difficult to find and may require navigating government legal databases or PacLII. A search on PacLII for "Capital Market Act Papua New Guinea" should yield results: https://www.paclii.org/pg/legis/

Website: http://www.scpng.gov.pg/ (Check for any news or statements, though specific crypto guidance is unlikely to be found here.)

Bank of Papua New Guinea (BPNG) Circulars and Statements: BPNG, as the central bank, has the authority to regulate financial services. While it has expressed caution regarding cryptocurrencies, it is working towards a regulatory framework for virtual assets. Any entities providing virtual asset services are expected to comply with existing AML/CTF obligations.

Website: https://www.bankpng.gov.pg/ (Look for press releases, circulars, or financial stability reports for any mention of virtual assets.)

Anti-Money Laundering and Counter-Terrorist Financing Act 2015: This act is crucial for any entity dealing with virtual assets, regardless of their securities classification.

The Bank of Papua New Guinea (BPNG) is the central bank and primary regulator responsible for the AML/CFT regime in Papua New Guinea. NEW Papua New Guinea Anti-Money Laundering and Counter...

A new Papua New Guinea Anti-Money Laundering and Counter-Terrorist Financing regime has been announced by BPNG, establishing a modern legal framework for AML/CFT obligations. NEW Papua New Guinea Anti-Money Laundering and Counter...

The government of Papua New Guinea has enacted new AML/CFT legislation, but no specific instrument number or enactment date is provided in available sources. NEW Papua New Guinea Anti-Money Laundering and Counter...

Papua New Guinea's FATF membership or mutual evaluation status is not documented in the provided sources, and no official FATF assessment for the country is cited. 中国人民银行-反洗钱局-国际合作与交流-FATF

No dedicated virtual asset or cryptocurrency legislation has been enacted in Papua New Guinea, and no regulatory body has been assigned specific authority over digital assets. Department of Education | Papua New Guinea

The AML/CFT framework in Papua New Guinea is based on the central bank's regulatory role, but no specific regulations or rulebooks addressing virtual assets have been published. NEW Papua New Guinea Anti-Money Laundering and Counter...

No licensing regime exists for cryptocurrency exchanges, virtual asset service providers, or other crypto-related businesses in Papua New Guinea under the current AML/CFT framework. NEW Papua New Guinea Anti-Money Laundering and Counter...

The Bank of Papua New Guinea has not published any licensing criteria, capital requirements, or application procedures for virtual asset service providers. NEW Papua New Guinea Anti-Money Laundering and Counter...

No entity has been licensed to conduct crypto-related activities in Papua New Guinea, and the regulatory pathway for such a license is undefined in available sources. NEW Papua New Guinea Anti-Money Laundering and Counter...

The AML/CFT regime announcement does not specify which activities, if any, related to virtual assets would trigger licensing obligations under the new law. NEW Papua New Guinea Anti-Money Laundering and Counter...

There is zero evidence that any crypto exchange or Web3 business has obtained a license from BPNG, with no licensed entity list or public registry available. NEW Papua New Guinea Anti-Money Laundering and Counter...

The AML/CFT framework places obligations on financial institutions and other reporting entities, but no specific guidance has been issued regarding virtual asset transactions or crypto-related customer due diligence. NEW Papua New Guinea Anti-Money Laundering and Counter...

No publicly available information from BPNG specifies beneficial ownership requirements, PEP screening protocols, or record retention periods applicable to crypto businesses in Papua New Guinea. NEW Papua New Guinea Anti-Money Laundering and Counter...

The new AML/CFT regime is designed to bring Papua New Guinea in line with international standards, but no documentation of its alignment with FATF recommendations for virtual assets is publicly cited. NEW Papua New Guinea Anti-Money Laundering and Counter...

No enforcement actions, fines, penalties, or cases against crypto businesses or individuals related to digital assets in Papua New Guinea are documented in the available sources. NEW Papua New Guinea Anti-Money Laundering and Counter...

No public records exist of BPNG taking regulatory action against any virtual asset service provider operating in Papua New Guinea. NEW Papua New Guinea Anti-Money Laundering and Counter...

Papua New Guinea has no specific regulatory framework for crypto assets, creating significant legal uncertainty for businesses operating in the Web3 space. NEW Papua New Guinea Anti-Money Laundering and Counter...

The new AML/CFT regime does not explicitly address virtual asset service providers, leaving crypto businesses outside the regulated perimeter with no compliance pathway. NEW Papua New Guinea Anti-Money Laundering and Counter...

No risk assessments, guidance papers, or consultation documents have been published by BPNG regarding virtual assets, indicating a low regulatory priority. NEW Papua New Guinea Anti-Money Laundering and Counter...

Businesses face reputational and legal risks operating without clarity on whether crypto activities fall within existing financial services regulations administered by BPNG. NEW Papua New Guinea Anti-Money Laundering and Counter...

The absence of crypto-specific AML/CFT obligations creates a gap where virtual asset platforms could operate without reporting, registration, or oversight obligations, exposing the financial system to money laundering risks. NEW Papua New Guinea Anti-Money Laundering and Counter...

International partners and correspondent banks may impose stricter due diligence on Papua New Guinea-based entities operating in crypto due to the lack of a clear regulatory framework, increasing operational friction. NEW Papua New Guinea Anti-Money Laundering and Counter...

NEW Papua New Guinea Anti-Money Laundering and Counter-Terrorist Financing Regime

Department of Education | Papua New Guinea