PNG fighting economic crime in the modern world

Mr. Koim speaking during the symposium

The international community now appreciates Papua New Guinea’s effort in fighting against corruption.

This was revealed by the head of the Task Force Sweep Team, Sam Koim after the recently concluded Thirty-first International Symposium on Economic Crime in the United Kingdom.

“I am satisfied that the International Community is recognizing what we are doing to rid our country of corruption” said Koim.

The Thirty-first Symposium focused on the identification and control of real and current threats to the financial system and in particular financial institutions from those who engage in self-dealing, corrupt practices and fraud or who assist and facilitate the crimes of others by laundering criminal property or evade taxation.

Pacific Business Review interviewed Mr. Koim, who also presented a paper during the symposium on the Practical Problems in International Co-operation in PNG. Our analysis revealed that the regulatory and enforcement environment has changed in many jurisdictions as a result of the financial crisis and the parameters of responsibility and therefore liability have become even less clear. Increasingly, responsibility is placed on those in supervisory positions to ‘insure’ the integrity of subordinates and others. These obligations themselves create the potential for new forms of civil and administrative liability. All contribute as very real risks to reputation and thus, stability and sustainability of nation.

“Normally, international co-operation in combating cross-border corruption and money laundering are done through the Mutual Legal Assistance (MLAs) arrangements between countries. MLA’s are however, at times hindered by convoluted bureaucratic red tapes, compounded by differences in jurisdictions and domestic requirements, the protection of sovereignty and lack of capacity to deal with the requests. On the other hand, multinational conglomerates are structuring their operations to span borders and conducting transactions at a click of a keyboard. In those circumstances, Informal intelligence information sharing between countries becomes very useful in combating cross border crime” Mr. Koim said.

According to Koim, many developed countries house most of the proceeds of corruption from the developing countries as politically exposed persons move their illicit gains for a better lifestyle abroad.

Koim also highlighted his recent trip to Australia where he addressed representatives of the Anti-money laundering (AML) divisions of all of the major Australian banks. He urged the Banks in Australia to treat all large transactions from PNG as “high-risk” and to conduct enhanced due diligence on every customer from PNG.

Mr. Koim  also had the opportunity to meet a UK based risk advisory group that do skills trainingHe also met with a Proceeds of Corruption Unit that the British Government established which traces the flow of foreign politicians' money through London, and is funded by the UK government's Department for International Development, which also delivers aid to Africa.

and other anti-corruption related projects in many countries around the world.

Koim also paid a courtesy call to the PNG High Commissioner to UK, Ms Winnie Kiap. It is not known what he discussed with the High Commissioner but it would be interesting to know if he had discussed anything with relation to the closure of PNG High Commissions bank account in the UK by HSBC Bank for possible money laundering activities in the very recent past.