Financial Crime World

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Mongolia’s Anti-Money Laundering and Know-Your-Customer Regulations: A Guide to Compliance

Ulaanbaatar, Mongolia - As part of its efforts to combat money laundering and terrorist financing, the Mongolian government has implemented strict regulations for financial institutions and businesses operating in the country. In this article, we will outline the key requirements for anti-money laundering (AML) and know-your-customer (KYC) compliance in Mongolia.

Proof of Address

To comply with AML/KYC regulations, businesses must verify their customers’ identities using one or more of the following documents:

  • A current utility bill (e.g. gas, electricity, telephone, or mobile phone bill)
  • A document issued by a government department showing the customer’s address
  • A bank statement that is no older than three months

Timing of Verification

Identity verification is not a one-time process, but rather an ongoing requirement that must be applied in multiple instances as per regulations. The timing of verification depends on the business’s requirements and its conveyance to Shufti Pro.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD)

Under Mongolian regulations, businesses are required to determine if their customers are PEPs or exhibit a higher risk profile. To fulfill this obligation, Shufti Pro provides an AML screening service that screens ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Reliance on External Services

Mongolian regulations allow businesses to seek the services of third-party providers for due diligence measures. However, the business remains liable for maintaining compliance and fulfilling AML/KYC obligations.

Record Retention

Under Mongolian regulations, businesses are required to retain data for not less than five years as part of their AML/KYC obligations for due diligence.

Conclusion

In conclusion, Mongolia’s anti-money laundering and know-your-customer regulations require financial institutions and businesses operating in the country to implement strict compliance measures. By understanding these requirements, businesses can ensure that they are compliant with Mongolian laws and regulations.