Dirty money from crime and corruption threatens Papua New Guinea’s economy. According to the Financial Analysis and Supervision Unit (FASU) Annual Report 2025, corruption and fraud are the top sources of illicit funds in PNG. The report states “the principal sources of illicit proceeds in Papua New Guinea continue to be corruption, bribery, fraud and tax evasion”. Stolen proceeds are often moved through corporate bank accounts or lawyers’ trust accounts, then sent abroad. In 2024–2025, the Bank of PNG even ended the use of private-sector cheques to cut off a common laundering method.
PNG authorities have begun to fight back. A new taskforce (ARROW) coordinates FASU, police and prosecutors to seize criminal assets. One joint enforcement action seized over K300,000 (≈US$90,000) under a restraint order. High-value cases include confiscations of illicit gold at airports. Yet experts warn enforcement is still weak: earlier assessments found few prosecutions despite thousands of suspicious transactions reported.
In addition, the report outlines that online crime is surging. According to official sources, critical PNG systems have recently been targeted by hackers. In early 2025, the tax authority (Internal Revenue Commission) suffered a major cyber-attack that took down its network for weeks. Sensitive taxpayer data may have been exposed in the breach, though the IRC initially described it only as a “system outage”. Experts say PNG’s limited IT budgets make such hacks more damaging, with recovery taking longer than in wealthier nations.
Online fraud, ransomware and child exploitation are also growing threats. Internet connectivity has brought benefits but also vulnerabilities: analysts note rising reports of sextortion scams, fraudulent investments and data theft in PNG. A local cybersecurity expert warns that Pacific countries such as PNG “usually have fewer budgets for IT” and so suffer greater damage from attacks. What can government, businesses and communities do to beef up PNG’s cyber defences before the next big attack and how can PNG improve financial oversight and asset recovery to keep dirty money out of our economy?





Leave a Reply