Logging high risk industry

THE Papua New Guinea (PNG) Forest Industry Association says about 30 Bank South Pacific Financial Group (BSP) accounts of logging companies have been closed due to its Anti-Money Laundering (AML) best practices.
The association in a letter to Forest Minister Solam Mirisim said the bank’s action had serious consequences on the country’s economy.
In response, BSP group chief executive officer Robin Fleming said it had not been actively lending in the logging sector because it was considered a high-risk industry.
“We also have a Social Environment Management System (SEMS) in place the past 10 years that guides us to be more cautious in our lending,” he added.