BSP: Process in place to clear money

BANK South Pacific (BSP) has processes in place to assist people in the informal sector verify their money when they want to deposit sums of over K5,000, chief executive officer Robin Fleming says.
Fleming said they recognised that it was sometimes difficult for those in the informal sector to provide documentary evidence.
“In such cases, BSP examines the customer’s reported activity such as previous account transaction history to establish whether the deposit is consistent with the customers known activities or whether it is unusual.
“This will also determine whether the reported source of funds is consistent with the customer’s location and other circumstances.
“BSP will reject the deposit only if no evidence of the source of payment is provided and the account activity is unusual for the customer and is not consistent with the expected income from that type of activity,” he said.
“BSP examines each case carefully before making a decision to reject a deposit.”
Fleming said this was consistent with the Anti-Money Laundering and Counter Terrorist Financing Act enacted to ensure that PNG met its international obligations to counter money laundering and terrorist financing.
“Money laundering is a global problem which weakens the legitimate economy and it is important that all sectors of society, including the government, banks and the community come together to fight this problem.”
Fleming said PNG had been placed on the FATF (Financial Action Task Force) list of high-risk and non-cooperative jurisdictions in 2014.
“It was only removed from the list in 2016 after the enacting of new legislation, including the AML/CTF Act 2015.
“Ultimately, any law which reduces or eliminates money laundering will benefit the economy and therefore will benefit customer.”