Cooperation Between ITC and GPML Yields Practical Results in Fighting Financial Crime

Effective Cooperation Against Financial Crime

The International Training Centre (ITC) and the Government of Mongolia’s Law Enforcement Agency (GPML) have demonstrated effective cooperation in their Technical Assistance (TA) project to combat money laundering and terrorist financing. The project, implemented from 2005 to 2006, aimed to strengthen Mongolia’s financial system by establishing an effective anti-money laundering/combating the financing of terrorism (AML/CFT) regime.

Laws and Regulations

One of the key outcomes of the project was the enactment of the AML Law in Mongolia. Although the law has some shortcomings, it is a significant step forward in the country’s efforts to combat financial crime. The ITC and GPML teams worked closely together to develop the law, which sets out the legal framework for preventing and combating money laundering and terrorist financing.

Establishing the Financial Intelligence Unit (FIU)

The project also contributed to the establishment of Mongolia’s FIU. Although the unit was not fully operational during the project period, it has since become a key institution in the country’s AML/CFT regime. The ITC provided expert advice and training to help establish the FIU, which is responsible for collecting and analyzing financial intelligence to prevent and combat money laundering and terrorist financing.

Blueprint for IT Services

Another important outcome of the project was the development of a blueprint for information technology (IT) services to support Mongolia’s AML/CFT regime. The blueprint outlines the IT infrastructure needed to facilitate effective communication, data exchange, and analysis among financial institutions, regulatory bodies, and law enforcement agencies.

Strengths and Weaknesses

In their final report, the ITC team identified some strengths in Mongolia’s financial system, including:

• Reasonable working relationship between the Bank of Mongolia, Ministry of Finance, and other key agencies

However, they also highlighted some weaknesses, such as:

• Lack of political commitment to AML/CFT issues
• Need for greater awareness among financial institutions about their role in preventing money laundering and terrorist financing

Conclusion

The ITC-GPML TA project has demonstrated that effective cooperation between international experts and local authorities can yield practical results in fighting financial crime. The project’s outcomes have laid a solid foundation for Mongolia to further develop its AML/CFT regime and strengthen its financial system.