Posted By Staff Reporter : www.pngfacts.com
BANK of PNG governor Loi Bakani “succumbed to political pressure” when he distanced himself from regulatory actions taken by the Financial and Analysis Supervision Unit (Fasu) against a commercial bank, claims Opposition Leader Belden Namah.
He was responding to a statement by Bakani distancing the Bank of PNG (BPNG) from regulatory actions taken against the Bank South Pacific Financial Group Ltd (BSP).
Bakani said the action taken by Fasu against the commercial bank was done independently based on the Anti-Money Laundering and Counter-Terrorist Financing Act.
“Fasu should have consulted BPNG on the statement before releasing it,” Bakani said.
Namah said it was sad “to see a governor succumb to political pressure”.
“Bakani is now seen as compromising the independence of BPNG and undermining its own authority to manage the Government’s monetary policy and all financial and banking laws and regulations including those pertaining to fraudulent transactions and money laundering,” Namah said.
He said Fasu was a division of the bank Bakani was the head of.
“One can understand the wider implications of the actions taken by Fasu on the integrity of the country’s financial systems but we are confident that the financial system has grown big enough to absorb attacks of this nature from time to time,” he said.
“Otherwise, we will be institutionalising corruption in our financial systems.
“Then corruption in our country will have become systematic in all institutions of government.
“And then, where do we go from there.”
Namah said the BSP Group was “PNG’s pride but its reputation must be squeaky clean”.
“If it breaches the country’s financial and monetary guidelines and regulations, then those officers involved, including the top management and board must be held to account,” he said.
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