ACT NOW! has today published a new Risk Alert examining the compliance risk environment surrounding the KK Connections corporate group (“KK Group”), one of Papua New Guinea’s largest forestry operators.

The report, Kevin Ling, the KK Connections Corporate Group and its Logging Operations in Papua New Guinea, forms part of ACT NOW!’s ongoing Risk Alert series designed to support anti-money laundering (AML), environmental compliance, and human rights due diligence across Papua New Guinea’s forestry sector.

The KKC Group was selected as the subject for the Alert based on the systemic risks associated with the location and scale of the group’s operations, the predominant reliance on one type of logging licence with known forestry governance failures, and because of the track record of the organisational and some key personnel.

The Risk Alert identifies elevated compliance risks associated with certain KK Group companies based on documented historical links with the Kerawara Group, an operator previously subject to adverse judicial findings concerning unlawful logging and governance failures, as well as contemporary concerns linked to Forest Clearing Authority (FCA) logging operations, landowner consent processes, and judicial findings relating to invalid permit approvals .

What are Risk Alerts?

Risk Alerts are intelligence-based publications designed to help financial institutions, regulators, law enforcement agencies, professional service providers, and commercial counterparties identify sectors, operators, and activities that may require enhanced due diligence.

They are not accusations of criminal wrongdoing.

Rather, Risk Alerts assess patterns of elevated risk based on environmental, organisational, and personnel factors. They provide reference to verified public sources—including court decisions, Commission of Inquiry findings, regulatory reviews, and corporate records—to support risk-based decision-making.

As the report explains, “risk is not an accusation of wrongdoing. Rather, it is an estimation… of the potential for wrongdoing” .

Why this matters in Papua New Guinea

Papua New Guinea’s forestry sector is widely recognised as presenting heightened risks of illegal logging, illicit financial flows, and regulatory non-compliance.

The report notes that national and international assessments estimate illegal logging may account for between 70% and 90% of exported timber by value, while illicit financial flows linked to forestry crime may exceed revenues generated through the legal timber market.

Forest Clearing Authorities (FCAs), originally intended to support genuine agricultural development, have been repeatedly identified as a major risk area where large-scale logging can occur without corresponding agricultural development or, in some cases, without adequate landowner consent .

In this context, improving AML intelligence is critical.

Papua New Guinea’s recent placement on the Financial Action Task Force (FATF) grey list has further increased international scrutiny of the country’s ability to detect and prevent money laundering and related financial crime. Forestry crime and the movement of proceeds from illegal logging are directly relevant to those concerns.

Civil society organisations have an important role to play in helping fill intelligence gaps where official information is difficult to access. As recognised by FATF itself, specialist sectors such as forestry require stronger information sharing between compliance professionals, law enforcement, and civil society.

Why the KK Group was selected

The KK Group was selected because of the scale of its operations and its concentration in East New Britain Province, one of Papua New Guinea’s largest logging regions.

Export monitoring data shows KK Group entities were among the country’s biggest log exporters and topped national log export volumes in 2022, with more than 273,000 cubic metres exported that year.

Approximately 84% of the Group’s recorded exports have been linked to FCA projects, a licensing pathway identified as carrying elevated compliance risk.

Supporting stronger due diligence

The Risk Alert is intended to assist:

  • banks and lenders
  • commodities traders and timber buyers
  • legal, accounting, and audit professionals
  • shipping and logistics operators
  • machinery suppliers and contractors
  • regulators and law enforcement agencies

in applying proportionate, risk-based due diligence when engaging with Papua New Guinea’s forestry sector.

“Risk Alerts are about prevention,” ACT NOW! says.

“They help organisations identify where enhanced scrutiny is needed before harm occurs—before environmental crime becomes financial crime, and before illicit proceeds move undetected through the financial system.”

The report should be read as an intelligence resource to support compliance and investigation, not as a determination of liability.