Papua New Guinea’s placement on the Financial Action Task Force (FATF) grey list has triggered a stark exchange between the Government and the Parliamentary Opposition, exposing deep divisions over leadership, accountability, and the country’s economic direction.
Opposition Leader James Nomane has launched a blistering critique of the Marape-Rosso Government, describing grey listing as a “global indictment” that cannot be softened by political spin.
He argues that while the Treasurer Ian Ling-Stuckey engages international lenders in the United States, the country is facing a “triple blow” of grey listing, a collapsing kina, and a national debt that has been alleged to have ballooned to K65 billion since 2019.
According to Mr. Nomane, the Government’s reliance on an 18-point action plan is a predictable, reactive measure aimed at appeasing creditors rather than fixing structural weaknesses.
In a statement, he maintains that PNG’s return to the grey list demonstrates a failure to sustain reforms, strengthen institutions, and uphold international standards over the past six years.
Grey listing, he warned, will raise compliance costs, slow financial flows, erode investor confidence, and worsen the cost-of-living crisis already burdening ordinary families.
The Opposition Leader attributes the situation to weak leadership that has allowed corruption, patronage, and institutional decay to flourish.
He has outlined an alternative strategy centered on strengthening the independence of enforcement agencies, adopting a zero-tolerance anti-corruption framework, stabilizing the kina through disciplined fiscal management, establishing a permanent FATF compliance unit, and introducing transparent public reporting on anti-money-laundering progress.
In contrast, Prime Minister James Marape has sought to reassure the nation that Papua New Guinea is well prepared to respond decisively.
He stressed that grey listing is not new to the country and noted that PNG successfully exited a previous listing in 2015.
The Prime Minister said the Government has already made significant progress, with only about nine outstanding compliance issues remaining—far fewer than during the last grey-listing episode.
He confirmed that the Governor of the Bank of Papua New Guinea and a technical team are actively engaging international counterparts in ongoing assessment discussions.
PM Marape highlighted reforms implemented since 2015, including the establishment of the Independent Commission Against Corruption and stronger proceeds-of-crime laws, arguing that PNG’s anti-money-laundering and enforcement framework is now far stronger.
He assured Papua New Guineans that, now that the country is grey listed, the Government has started working “non-stop” to secure an early exit, potentially within months rather than years.