Papua New Guinea (PNG) faces veryserious risks of Money laundering (ML) from various criminalactivities including domestic corruption (misappropriationof public funds), which is considered a serious problem. PNGis experiencing rapid economic growth, very large scaleforeign investment and an escalating crime rate. While theFinancial Intelligence Unit (FIU) is building its capacity,there is no clear political level commitment to 'followthe money' to tackle corruption and other crimes, andno demonstrated commitment to regulate and supervise AMLobligations by financial sector regulators, which severelyhampers the authorities ability to tackle financial aspectsof corruption. Misappropriation of government funds occursusing government payments which, according to theauthorities, are generally placed through the banking sectorin PNG and used to purchase real estate, high-valuevehicles, distributed in cash or moved offshore. This reportprovides a summary of the Anti-Money Laundering andCombating the Financing of Terrorism (AML/CFT) measures inplace in PNG at the time of the mission or shortlythereafter. The report was produced by the World Bank aspart of the Financial Sector Assessment Program (FSAP) of PNG.