The laws of unclaimed moneys in Papua New Guinea (PNG) are found in the Unclaimed Moneys Act 1963. This piece of vintage legislation dates back to pre PNG independence. In my view the Act should be updated to reflect PNG's actively expanding modern economy.

Will the Unclaimed Moneys Act apply to my business?

The Act applies to any of the following:

  1. PNG incorporated companies;
  2. Registered foreign companies; and
  3. Firms (such as individual partnerships).

If you fall into any of the above categories and have unclaimed dividends, bonuses, profits, salaries, interest or wages which:

  1. are over K10 (about AUD $4); and
  2. have remained unpaid for 12 months or more,

then you are required by PNG law to keep a register of unclaimed moneys. The register needs to be in the prescribed form and kept at the principal office or place of business in PNG1.

What needs to be done and when?

Each entry in the register must be advertised by the company or firm in the National Gazette. Advertising is required during March in each year. There is also a requirement to:

  1. lodge a copy of all the entries in the register to the Registrar of Unclaimed Moneys; and
  2. allow any person inspection of the register.

If there has been no advertisement then there is still a requirement to provide a statement to the relevant authority2. The statement needs to go together with payment of any unclaimed moneys. All unclaimed moneys will then be placed in an account called the Unclaimed Moneys Fund.

Non-compliance

Failure to comply with the provisions of the Act constitutes an offence whereby monetary penalties will be applied.

Conclusion

Being aware of the legal and regulatory compliance issues facing your business should reduce operational risk and potential claims. If in doubt you should always speak to a PNG admitted lawyer to discuss regulatory compliance issues.

Footnotes

1See section 6 of the Unclaimed Moneys Act 1963

2Section 7 of the Unclaimed Moneys Act provides that the statement needs to be made in the prescribed form. (i.e. Form 2) within 14 days after the expiration of that period of 12 months, by the company or firm to an accountable officer to be placed in the Trust Fund to the credit of an account to be known as the Unclaimed Moneys Fund

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.