The Financial Analysis and Supervision Unit (FASU) within the Bank of Papua New Guinea is issuing this media release in relation to the regulatory actions it is taking against the BSP Financial Group Limited (referred to as BSP). FASU is Papua New Guinea (PNG)'s Financial Intelligence Unit (FIU) and Anti-Money Laundering and Counter-Terrorist Financing (AML/CTF) regulator. On 23 October 2019, FASU conducted an onsite inspection of BSP. This inspection tested (1) BS P's level of compliance with various sections of the Anti-Money Laundering and Counter Terrorist Financing Act 2015 (AML/CTF Act) and its own AML/CTF program, and (2) BS P's effectiveness in implementing its procedures, policies and/or controls to complying with its Enhanced Customer Due Diligence (ECDD) obligations particularly when dealing with high-risk customers. It did so by examining the customer files pertaining to eight (8) 'high-risk' BSP customers. In addition to an offsite desktop review inspection in January 2019, this was the second onsite inspection of BSP by FASU. On this occasion, the inspection was intelligence-led and targeted at specific areas where FASU's intelligence-holdings indicated apparent non compliance with the AML/CTF Act. Also as indicated by BSP's Market Announcement, this matter has been unresolved for an extended period and this has, in part, been due to the impact of COVID 19 on the operations of FASU.