Mongolia Adopts Strict Measures to Combat Money Laundering and Terrorism Financing

Ulaanbaatar, Mongolia - A New Era in Financial Regulation

In an effort to curb money laundering and terrorism financing, Mongolia has introduced strict regulations requiring financial institutions to maintain records of customer transactions for at least five years.

Record-Keeping Requirements

According to Article 8.2 of the new law, entities described in Paragraph 4.1, including:

• Banks
• Insurance companies
• Other financial institutions

must keep detailed records of all customer transactions, including those made using:

• Cash
• Bearer negotiable instruments
• Electronic payment methods

Internal Monitoring Program

The regulations also require these entities to implement an Internal Monitoring Program aimed at combating money laundering and terrorism financing. The program must include:

• Procedures for evaluating risks
• Conducting customer due diligence
• Detecting suspicious transactions

Reporting Suspicious Transactions

Financial institutions are mandated to report any suspicious transactions to the Financial Information Unit (FIU) within a specified timeframe. The FIU is responsible for analyzing these reports and disseminating relevant information to competent law enforcement authorities.

Cash Transportation Regulations

The new regulations introduce stricter requirements for transporting cash across the Mongolian border. Travelers carrying more than MNT15 million or its equivalent in foreign currency must declare their cash holdings faithfully on customs declaration forms.

The Role of the Financial Information Unit

The Financial Information Unit, responsible for receiving and analyzing reports of suspicious transactions, will play a crucial role in monitoring and combating money laundering and terrorism financing.

“Mongolia’s new regulations demonstrate the country’s commitment to combating financial crimes and ensuring the stability of its financial system,” said an official at the Mongolian Financial Regulatory Commission. “We believe that these measures will help prevent the misuse of our financial system for illegal activities.”

Implementation and Effectiveness

The law is expected to come into effect on [insert date] and will apply to all entities described in Paragraph 4.1, including banks, insurance companies, and other financial institutions.

In related news, Mongolia’s Customs General Administration has announced that it will consolidate cash declarations made under the new regulations and transmit them to the Financial Information Unit every month. The format of declaration forms for this purpose has been approved by the Head of the Mongolian Customs General Administration in consultation with the Head of the Financial Information Unit.

Expected Impact

The government’s efforts to combat money laundering and terrorism financing are expected to have a positive impact on the country’s economy and financial stability.