Posted By Staff Reporter
THE Bank of Papua New Guinea (BPNG) has distanced itself from the regulatory actions taken against the Bank South Pacific (BSP) Financial Group Ltd.
BPNG maintains that the action was done independently based on the Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Act (2015).
Governor Loi Bakani said the Central Bank had not endorsed or approved the statement released by the Financial Analysis and Supervision Unit (Fasu) on Monday and the logo was not authorised.
“The Bank of PNG disassociates itself from the statement made by Fasu,” he said.
“The use of the bank logo was not authorised and the statement was not endorsed or approved by BPNG.
“Fasu should have consulted BPNG on the statement before releasing it.
“This would have avoided any potential contradictions and conflict with Acts under BPNG and its objectives.”
Bakani said BPNG was concerned about the adverse impact of the statement by Fasu on BSP, the country’s largest bank, and the stability of the financial system, which had been achieved and sustained well before the AML/CTF Act came into being.
He reassured the public that the banking system, including BSP, was sound and met all regulatory requirements and standards under the Banks and Financial Institutions Act 2000.
“BPNG will continue to administer the relevant laws to strengthen the integrity and sustainability of the financial system in PNG to remain stable.”
Fasu director Benny Popoitai yesterday said Fasu would comment today after gathering feedback.
He noted that Fasu operated independently from the Bank of PNG but was administratively looked after by the Central Bank.
Popitai said Fasu operated under the Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) Act 2015.
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