Prior exchange control approval must be obtained from the Central Bank to open and operate either a Kina or a foreign currency account outside PNG.

Exchange control approval is not required to open and operate a foreign currency account with an Authorised Dealer in PNG.
 

Gold Export Licence

Gold dealings within PNG were de-regulated in 1987 enabling all residents to buy and sell gold within PNG. For export purposes, an export license must be obtained from the Central Bank before gold of any form can be exported overseas. A gold export license is valid for only one (1) year and may be renewed subject to a renewal application to the Central Bank.

The following are the main requirements that must be satisfied before the Central Bank would consider issuing an export license:

1. Documentary evidence of the incorporation and registration of the company in PNG together with evidence  of the issued and paid-up capital of the company which should be at least K25,000.00;

2. A performance bond (a “bank guarantee” issued in favour of the Central Bank) of an amount not less than K75,000.00 in the first year of operation and upon the renewal of the license, the value of the bank guarantee would be adjusted to a figure not less than K75,000.00 or 75% of the previous calendar year’s annual turnover, whichever is the greater. The bond is to be deposited for 18 months with a bank in PNG licensed by the Central Bank;

3. The gold export license holder must be a single purpose company;

4. Evidence of financial standing, including bank references and the latest audited financial statements (or pro-forma financial statements for a newly incorporated enterprise);

5. Details of the area in PNG in which the exporter intends to operate;

6. Details of the expected annual turnover in grams;

7. Provide details and/or copies of contractual agreements with overseas buyer to whom the gold will be sold, and;

8. Confirmation of assaying arrangements for gold prior to its export from PNG.

There is no fee charged by the Central Bank for the Gold Export License.

Taking Physical Currency Out of PNG

Prior exchange control approval of the Central Bank must be obtained to take physical cash in notes and coins out of PNG in excess of K20,000.00 (or foreign currency equivalent).  An original TCC must be produced, where required.

PNG Guarantees Issued in Favour of Non-Residents

Exchange control approval must be obtained from the Central Bank for a written guarantee (the Guarantee Contract) to acquire or deal with an asset within or outside PNG, or to undertake any other transaction in favour of (or on behalf of) non-residents.

Resident Contracts in Foreign Currency and Settlement

Exchange control approval must be obtained from the Central Bank for a written contract in foreign currency between resident individuals and/or entities in PNG. The settlement of the contract must be done in Kina, regardless of whether the resident parties operate foreign currency accounts within or outside PNG.