Functions of central bank’s financial analysis unit

The National National

THE Bank South Pacific Financial Group Ltd (BSP) is currently facing regulatory action by Papua New Guinea’s central bank’s Financial Analysis and Supervision Unit (Fasu).
However, Fasu had only chosen to issue a formal warning and demanded the removal of certain senior BSP executives.
Fasu issued a letter to BSP on allegations of money laundering made against the bank.

What is Fasu and who are under its monitor?
Every financial institution and designated non-financial business or profession in PNG must register with Bank of PNG (BPNG)’s Fasu.
According to BPNG’s website, registration is required under Section 57 of the Anti-Money Laundering and Counter Terrorist Financing Act 2015 (the Act). Fasu is PNG’s new Financial Intelligence Unit (FIU) and replaces the previous FIU which was established under the Proceeds of Crime Act 2005 that was housed under the Royal PNG Constabulary.
Fasu is operationally independent within the BPNG.
The registration information provides Fasu with a more accurate understanding of its regulated population in PNG.
It conducts money laundering and terrorist financing risk assessments of each sector.
Accordingly, resources including awareness, training, workshops and typologies may be dispersed to commensurate each sectoral risk.
These activities being monitored and assessed include:

  • ACCEPTANCE of deposits and other repayable funds from the public, including private banking;
  • LENDING, including, but not limited to, customer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions, including forfeiting;
  •  FINANCIAL leasing other than with respect to arrangements relating to consumer products;
  •  TRANSFER of currency or value;
  •  ISSUING and managing means of payment including but not limited to, credit and debit cards, cheques, traveller’s cheques, money orders and bankers’ drafts and currency in non-physical form;
  •  ISSUING financial guarantees and commitments;
  • TRADING in – bearer negotiable instrument, foreign exchange, exchange, interest rate and index instruments, Transferable securities or Commodities futures trading;
  •  PARTICIPATION in securities issues and the provision of financial services related to such issues;
  •  INDIVIDUAL and collective portfolio management;
  •  SAFE keeping and administration of physical currency, bearer negotiable instruments or liquid securities on behalf of other persons;
  •  INVESTING, administering or managing assets on behalf of other persons;
  •  UNDERWRITING and placement of insurance, including insurance intermediation by agents and brokers; and,
  •  CURRENCY changing.