Financial Crime World

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Mongolia’s Efforts to Combat Money Laundering and Terrorist Financing Receive High Marks

Mongolia has made significant progress in addressing technical compliance deficiencies related to the prevention of money laundering and terrorist financing, according to a recent assessment. The country has implemented various measures to regulate and monitor virtual asset service providers (VASPs) and has spread public awareness about the emerging sector.

Regulatory Framework

Mongolia’s AML/CFT law provides a comprehensive framework for preventing ML/TF, including requirements for VASPs to:

  • Conduct customer due diligence
  • Obtain information on originating and beneficiary VASPs

The country has also implemented targeted financial sanctions and freezing mechanisms in place for wire transfers.

International Cooperation

Mongolia’s legal framework enables the Financial Regulatory Commission (FRC) and law enforcement agencies to have wide-ranging foreign cooperation arrangements with international bodies, including:

  • Exchange of information on AML/CFT supervision

However, some gaps remain, including a need for further clarity on:

  • Risk-based supervision of VASPs
  • Dissuasive monetary penalties in cases of non-compliance

Rating and Progress

As a result, Mongolia has been re-rated as “largely compliant” on Recommendation 15, which relates to the prevention of ML/TF. The country’s overall technical compliance with the Financial Action Task Force (FATF) Recommendations is also reflected in its rating, with only minor deficiencies remaining.

The report highlights Mongolia’s commitment to addressing ML/TF risks and its efforts to implement a robust regulatory framework for VASPs. The country’s progress has been marked by significant improvements since the previous assessment, and it continues to demonstrate a strong commitment to combating financial crimes.

Conclusion

Mongolia’s efforts to combat money laundering and terrorist financing have received high marks in recent assessments. The country continues to work towards addressing remaining gaps and improving its regulatory framework for VASPs. Its commitment to combating financial crimes is evident, and it is expected to maintain a strong reputation in this regard.