Mongolia’s Risk-Based Approach to AML/CTF Earns Positive Review

The Financial Action Task Force (FATF) has commended Mongolia for its significant progress in implementing a risk-based approach to combating money laundering and terrorist financing.

Ratings Highlight Mongolia’s Efforts

According to the latest FATF follow-up report, Mongolia has made substantial strides in assessing risks and applying targeted measures to mitigate them. The report highlights Mongolia’s compliance with several key requirements, including:

• Assessment of risk and application of a risk-based approach (rated as “largely compliant”)
• National cooperation and coordination (also rated as “largely compliant”)
• Confiscation and provisional measures (rated as “largely compliant”)

Notable Progress

Mongolia has also made notable progress in other areas, including:

• Laws and regulations governing money laundering offences
• Terrorist financing offences
• Targeted financial sanctions related to terrorism and proliferation

Room for Improvement

While Mongolia’s efforts have earned praise from the FATF, there are still some areas that require improvement, including:

• Regulation and supervision of non-profit organizations
• Customer due diligence
• Record keeping
• Internal controls

Ongoing Efforts

Mongolia has committed to continuing its efforts to strengthen its anti-money laundering and combating the financing of terrorism (AML/CTF) regime. The country has also demonstrated a willingness to engage with the FATF and other international partners to address any gaps or deficiencies in its system.

Conclusion

The FATF’s review of Mongolia’s AML/CTF framework is a testament to the country’s commitment to addressing money laundering and terrorist financing threats. While there are still areas for improvement, Mongolia’s progress has been significant, and its efforts will continue to be closely monitored by the international community.