The Sanctions Secretariat was established pursuant to the United Nations Financial Sanctions Act 2015 (Sanctions Act), which Papua New Guinea enacted to comply with its United Nations (UN) obligations.
As Papua New Guinea is a member of the UN, the Government of Papua New Guinea is obliged to implement United Nations Security Council (UNSC) sanctions as a matter of international law. These sanctions are inscribed in Sanctions Lists issued by the UNSC or its Committees, and in UNSC Resolutions (UNSCRs). They disseminate financial sanction regimes that member countries must implement to detect and disrupt the financing of terrorism and the proliferation of weapons of mass destruction (WMD), and other matters of international concern.
The Financial Action Task Force (FATF) Standards also require countries to implement targeted financial sanctions to comply with UNSC Resolutions related to financing terrorism and WMD.
The Sanctions Act imposes prohibitions arising from United Nations Security Council Resolutions (UNSCRs) and domestic resolutions by the Prime Minister of Papua New Guinea or the court under the Sanctions Act.
Currently, prohibitions pursuant to the Sanctions Act are only placed on UNSC-designated persons and entities, as there has been no domestic designation.
Under section 6 of the Sanctions Act, designations by the UNSC shall have
- immediate application in Papua New Guinea; and
- immediate effect in imposing the prohibitions in that Act; and
- can only be revoked by the UNSC or its Committees; and
- shall continue in force until revoked by the UNSC or its Committee.
Under sections 7 and 8, there is a separate process for domestic designations made by the Prime Minister or the court under the Sanctions Act.
What are targeted financial sanctions?
Targeted financial sanctions are prohibitions under sections 14 and 15 of the Sanctions Act against:
- Dealing with an asset that is owned or controlled by a designated person or entity. As these assets cannot be used or dealt with, they are called “frozen assets”.
- Providing directly or indirectly an asset or financial service to (or for the benefit of) a designated person or entity.
|‘Asset’ means funds, property and financial resources of every kind, whether tangible or intangible, corporeal or incorporeal, movable or immovable, however, acquired, and legal documents or instruments in any form, including electronic or digital, evidencing title to, or interest in, such as assets, including but not limited to currency, bank credits, deposits, traveller’s cheques, bank cheques, money orders, shares, securities, bonds, drafts and letters of credit and any interest, dividends, income or value accruing from, generated by or derived from such asset.|
‘Deal’ includes transferring, converting, disposing of, moving or using the asset.
‘Designated person or entity’ means a person or entity designated by the UNSC or one of its Committees or by the Prime Minister under the Sanctions Act because they are associated with terrorism or proliferation of WMD.
The email contact for the Sanctions Secretariat is: