Corporate banking in Papua New Guinea in 2021
Healy Consultants assists our Clients with opening a corporate bank account in Papua New Guinea. Our experienced banking team will prepare all required documentation and submit them to their preferred bank. We will also attend the bank interview on your behalf and may assist you with applying to the full range of PNG corporate banking services. Please read below for further information regarding Papua New Guinea banking system and our corporate banking services in this country.
Papua New Guinea corporate banking options
- Papua New Guinea’s financial and banking system is regulated by the i) Bank of Papua New Guinea (BPNG) ii) Central Banking Act 2000 and iii) Financial Institutions Act 2000. The system is relatively stable and closely linked with New Zealand and Australia’s financial systems and comprises of i) 4 major commercial banks ii) 22 savings and loan societies iii) 10 licensed finance companies among other microfinance institutions;
- PNG’s banking system is dominated by the locally owned i) Bank of South Pacific. Foreign banks present include ii) ANZ banking Group iii) Maybank iv) and Westpac Banking Corporation. BSP, ANZ and Westpac and all have branches in major provincial centers. Automated teller machines (ATMs) are also available in the main centers. All banks have continually implemented technology based strategies to take banking facilities to people outside main centers;
- Although the banking system may still be underdeveloped, the commercial banks in Papua New Guinea tend to offer an extensive range of financial solutions to cater for business within the country. Services offered include i) business checking and savings accounts ii) foreign currency accounts iii) online business banking iv) corporate debit and credit cards v) tailored business loans vi) asset financing and vii) trade refinance;
- The Papua New Guinean Kina (PGK) is the currency of Papua New Guinea and exchanges at PGK3.17 to the US$ although the most popular Kina exchange rate is the PGK to the Australian Dollar (AUD) at PGK2.33;
- With English as one of PNG’s official languages, communication and interaction is easy hence with the right bank. However, red tape explains why the account opening process can take more than 4 weeks to complete.
- In general, there is no foreign exchange control in PNG. A person may freely hold, use and transfer funds in foreign currencies. However, the transfer of funds in foreign currencies to and from abroad is subject to a reporting obligation to Papua New Guinea’s central bank, Bank of Papua New Guinea. The reporting obligation is on the side of the PNG party;
- Healy Consultants assists our Client open a corporate bank account with their preferred bank or ANZ Papua New Guinea. Our Client deposits the paid up share capital and supplies Healy Consultants with a certificate of deposit and bank statement;
- Where possible, Healy Consultants bank account opening team will liaise with the bank to prevent our Client having to travel for an account opening interview.
Healy Consultants Papua New Guinea corporate banking services
- Healy Consultants assists our Clients with opening a corporate bank account in Papua New Guinea.
- Healy Consultants will be pleased to assist our Clients with opening a corporate bank account for their Papua New Guinea company within 4 weeks. Internet banking will be approved within the subsequent 3 weeks;
- While our firm will liaise with the banks in to prevent our Clients from travelling to PNG, there is still a 50% chance that the bank may require our Clients willing to start a business to travel for a one hour interview in Papua New Guinea;
- Following bank account approval, the preferred PNG bank will email our Client the corporate bank account details, required to set up business in Papua New Guinea.
- If requested, Healy Consultants will also be pleased to assist our Clients with obtaining bank financial support for their projects in Papua New Guinea.
- Healy Consultants may assist our Clients with obtaining corporate finance in the form of a loan, overdraft or simply preferential credit terms. Please contact our Papua New Guinea CRO for inquiries regarding these services and related fees;
- In addition to corporate finance, our in-house consultants may also provide our Clients with assistance to secure trade finance services including i) bank guarantees ii) letters of credit iii) finance against trust receipt (for imported goods) and iv) document against payment and against acceptance.
Opening a corporate bank account in Papua New Guinea
- In order to open a corporate bank account on our Client’s behalf, Healy Consultants will proceed as below:
- Healy Consultants assists our Client to choose the best corporate bank account amongst the different banking options available in Papua New Guinea. This can however be done prior to or after setting up business in PNG as it is not a requirement before setting up;
- Healy Consultants submits a complete corporate bank account opening application to the preferred commercial bank including i) tax information from the Internal Revenue Commission ii) the relevant company documents including the certificate of incorporation iii) bank account application forms and iv) all due diligence documents;
- Once the corporate bank account is approved, Healy Consultants emails our Client the bank account details to the Client’s preferred destination;
- In PNG, Healy Consultants recommends the services of the following banks i) ANZ Bank which has a presence in over 30 countries globally and ii) Westpac Banking which is the most sustainable bank globally according to the Corporate Knights ranking 2014.
Exchange controls and other regulation
- Transactions done in foreign currency accounts relating to capital operations within any bank in Papua New Guinea must be recorded on stipulated Balance of Payments (BOP) forms by the account holder and submitted to the central bank of Papua New Guinea (BPNG);
- Inward receipts or outward remittance of foreign currency within Papua New Guinea or abroad for amounts in excess of PGK10,000 or the foreign currency equivalent must be recorded and reported to the central bank of Papua New Guinea;
- For annual remittances abroad in excess of PGK50,000 or the foreign currency equivalent, a tax clearance certificate from the Internal Revenue Commission of Papua New Guinea must be presented;
- Additionally, an approval from the central bank of Papua New Guinea (BPNG) is required for annual overseas remittances in excess of PGK500,000 or the foreign currency equivalent;
- Generally, there exists no stringent foreign exchange controls and regulations in PNG. Prior approval for foreign exchange transactions is no longer required provided the same are reported to the central bank of Papua New Guinea (BPNG), the regulator of PNG’s banking system.