Mongolia Makes Progress in Combating Money Laundering and Terrorism Financing

Ulaanbaatar, Mongolia

The Financial Action Task Force (FATF) has upgraded Mongolia’s rating on the recommendation to register and regulate Virtual Asset Service Providers (VASPs) from Partially Compliant (PC) to Largely Compliant (LC).

Significant Progress in Addressing Technical Deficiencies

The FATF report highlights that Mongolia has made significant progress in addressing technical compliance deficiencies identified since the amendment of Recommendation 15. The country has introduced a legal framework to regulate and monitor virtual assets and VASPs, enabling authorities to mitigate money laundering and terrorist financing risks.

Remaining Minor Deficiencies

However, minor deficiencies remain, including:

• Incomplete registration process for VASPs
• Need for further clarity on risk-based supervision
• Absence of dissuasive monetary penalties for non-compliance

Measures Implemented to Prevent Money Laundering and Terrorism Financing

The FATF report also notes that Mongolia has implemented measures to prevent VASPs from engaging in activities other than those specified in Article 6.1 of the law, such as:

• Freezing wire transfers without delay and prior notice
• Implementing measures in line with United Nations Security Council Resolutions (UNSCR) and related sanctions

Recognition by FATF**

Mongolia’s efforts to combat money laundering and terrorist financing have been recognized by the FATF, with the country being rated LC on Recommendation 15, indicating that it has made significant progress in implementing effective measures to prevent these threats.

Access the Full Report

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