Financial Crime World

Mongolia’s Anti-Money Laundering and Counter-Terrorism Financing System Boosts National Security

Ulaanbaatar, Mongolia - In a significant move to enhance national security, Mongolia has taken major strides in strengthening its anti-money laundering (AML) and counter-terrorism financing (CFT) system.

Approved AML/CFT National Strategy for 2022-2030

In July 2022, the Government of Mongolia approved the country’s AML/CFT National Strategy for 2022-2030. The strategy sets eight strategic objectives aimed at further improving Mongolia’s AML/CFT framework, addressing deficiencies identified in its Mutual Evaluation Report and implementing technical compliance and effectiveness requirements.

Strategic Objectives

  • Objective 1: Strengthening the legal and regulatory framework
  • Objective 2: Enhancing customer due diligence
  • Objective 3: Improving suspicious transaction reporting
  • Objective 4: Strengthening international cooperation
  • Objective 5: Developing a risk-based approach to AML/CFT supervision
  • Objective 6: Increasing transparency and accountability
  • Objective 7: Promoting awareness and education on AML/CFT
  • Objective 8: Enhancing the effectiveness of the AML/CFT system

Action Plan with 194 Items

To achieve these objectives, an action plan with 194 items was developed to meet 48 sub-objectives under the eight strategic objectives. The plan requires member organizations of the AML/CFT National Council and Cooperation Council to ensure effective implementation and report progress at council meetings.

Key Developments

  • Establishment of a working group to make amendments to the AML/CFT Preventive Measures Regulation in compliance with the AML/CFT Law and Law on VASP
  • Development of a long-term policy document “Vision-2050” which sets the goal of becoming a “Digital Nation”
  • Strengthened information exchange and strengthened AML/CFT regime, particularly for supervisions and investigations

Supervisory Activities

Supervisory authorities have continued conducting ML/TF risk assessments, off-site and on-site supervision, and monitoring compliance of AML/CFT and TFS obligations. Outreach activities have been organized for reporting entities, disseminating knowledge and feedback, while awareness-raising activities have been held for the general public.

Regulatory Reforms

  • The Bank of Mongolia has revised its regulations on conducting off-site and on-site AML/CFT/CPF supervision of banks
  • The Financial Regulatory Commission has revised its regulation on offsite and onsite supervision to non-banking sector reporting entities in the field of combating ML/TF

Virtual Asset Service Providers (VASPs)

  • 11 VASPs have obtained official registration after meeting requirements
  • The Financial Regulatory Commission has sent rectification notices to 19 VASPs who failed to apply for registration or did not meet necessary registration requirements

Conclusion

Mongolia’s efforts demonstrate its commitment to combating money laundering and terrorist financing, ensuring national security and stability. The country’s developments are expected to enhance international cooperation and support global anti-money laundering and counter-terrorism financing initiatives.