System Critical to Improve Monitoring of Terrorist Movements and Investigation of Serious Crimes
Ulaanbaatar, [Date] - Mongolia’s efforts to combat terrorist financing (TF) and money laundering (ML) have received a significant boost with the implementation of several critical systems and reforms.
Strengthening AML/CFT Framework
The AML/CT National Strategy for 2022-2030 was approved by the Government of Mongolia in July 2022, setting eight strategic objectives to strengthen the country’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework. An action plan with 194 items has been developed to achieve these objectives, including:
- Improving information exchange
- Strengthening supervisory authorities
- Enhancing risk assessments
Key Systems for Effective Implementation
Two key systems are critical to achieving these objectives:
goAML Software
The goAML software, introduced by the United Nations Office on Drugs and Crimes in July 2022, enables financial institutions and other reporting entities to submit suspicious transaction reports (STRs) and foreign currency transaction reports electronically. This improves the timeliness and quality of information exchange.
Unified Infrastructure for Public Information
The establishment of a unified infrastructure for public information at the National Data Center allows for secure, efficient, and transparent information exchange between government agencies. This system has been instrumental in enhancing risk assessments and improving the overall effectiveness of AML/CFT efforts.
Supervisory Authorities’ Efforts
Supervisory authorities, including the Bank of Mongolia and Financial Regulatory Commission, have:
- Conducted ML/TF risk assessments
- Performed off-site and on-site supervision
- Monitored compliance with AML/CFT obligations
- Organized outreach activities for reporting entities to disseminate knowledge and feedback
- Held awareness-raising activities for the general public
Regulations Revisions
Several regulations have been revised and updated to improve the effectiveness of AML/CFT supervision, including:
Regulations on Conducting Off-Site and On-Site AML/CFT/CPF Supervision of Banks
The regulation was revised in December 2022, allowing supervisors to update risk assessment tools and procedures on an ongoing basis.
Regulation on Off-Site and On-Site Supervision of Non-Banking Sector Reporting Entities in the Field of Combating ML/TF
The Financial Regulatory Commission has revised this regulation, improving its comprehensiveness and enhancing risk-based ML/TF supervision.
Conclusion
These developments demonstrate Mongolia’s commitment to strengthening its AML/CFT framework and improving the effectiveness of its efforts to combat terrorist financing and money laundering.