Financial Crime World

Title: APG Releases Report on Mongolia’s Progress in Combatting Money Laundering and Terrorist Financing

APG’s Mutual Evaluation Report on Mongolia

In a significant step towards enhancing the fight against Money Laundering (ML) and Terrorist Financing (TF) activities, the Asia/Pacific Group on Money Laundering (APG) has published its Mutual Evaluation Report (MER) on Mongolia. This assessment was carried out in November 2016, and the report was adopted at the APG’s annual meeting in July 2017.

About APG

  • APG is an international organization based in Bangkok.
  • Its primary objective is to strengthen the fight against ML and TF in its member states.
  • Comprises 41 members and international/regional observers.
  • Key international organizations supporting APG’s efforts include FATF, IMF, World Bank, OECD, UNODC, Asian Development Bank, and the Egmont Group.

Mongolia’s AML/CFT Progress

The MER revealed the following insights about Mongolia’s progress in tackling ML and TF:

ML Risks

  • Mongolia faces various ML risks, mainly from higher-risk predicate offenses.
  • Effectively monitoring these risks and applying a risk-based approach is crucial.

TF Risks

  • Limited exposure to TF risks in Mongolia.
  • Mongolia’s implementation level for ten of FATF’s twelve Immediate Outcomes is moderate.

Key Weaknesses

  • Insufficient ML/TF risk assessments.
  • Limited financial intelligence use.
  • A lack of adequate national policies, regulatory frameworks, and operational action plans.

Recommendations for Strengthening Mongolia’s AML/CFT Regime

The MER offers the following recommendations to fortify Mongolia’s AML/CFT regime:

  • Improve national risk assessment framework’s effectiveness.
  • Enhance financial intelligence sharing and analysis.
  • Intensify supervision and regulation of designated non-financial businesses and professions.
  • Boost international cooperation and coordination with other countries.

Conclusion

This evaluation aims to assist Mongolia in bolstering its ongoing efforts against ML and TF, ensuring the financial integrity and security of its financial sector and economy. To read the complete MER, visit the APG website (www.apgml.org).

Disclaimer

This article is for informational purposes only and does not serve as financial, legal, or other expert advice.