Financial Crime World

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Mongolia Passes Law to Combat Money Laundering and Terrorism Financing

Ulaanbaatar, Mongolia - The Mongolian Parliament has passed a new law aimed at combating money laundering and terrorism financing. The law establishes the Financial Information Unit (FIU) as the primary agency responsible for monitoring and preventing these illegal activities.

Key Provisions

Requirements for Supervisors

  • The FIU’s supervisors must have at least two years of relevant professional experience in banking, finance or law.
  • They must also have no outstanding debts or liabilities.

Head of the FIU and Analysts

  • The Head of the FIU will be a senior state inspector.
  • Analysts will be state inspectors of financial information.

Functions of the Financial Information Unit

Receiving and Analyzing Information

  • The FIU is tasked with receiving, collecting, and analyzing information reported by entities subject to the law, as well as information in databases of local and foreign institutions.
  • The unit will also disseminate information to competent law enforcement agencies and anti-terrorism organizations if it suspects that transactions are related to money laundering or terrorism financing.

Feedback and Methodology

  • The FIU is required to provide feedback on a timely basis about measures taken on suspicious transaction reports.
  • It must develop methodology for monitoring and detecting suspicious transactions.
  • It must also enhance public awareness of the dangers of money laundering and terrorism financing.

Monitoring and Enforcement

Cooperation among Agencies

  • The Bank of Mongolia, Financial Regulatory Commission, and Financial Information Unit will work together to monitor and enforce compliance with the law.

Consequences for Non-Compliance

  • Entities subject to the law must fulfill their obligations imposed by the law.
  • Any breaches may result in cancellation of special permits or licenses.

International Cooperation

Cooperation with Foreign Institutions

  • The FIU is authorized to cooperate with similar foreign institutions and international organizations that conduct similar activities and have similar confidentiality requirements.

Implementation and Effectiveness

Coming into Force

  • The law will come into force on May 31, 2013.

Implementation Oversight

  • The implementation of the law will be overseen by a Cooperation Council established at the Financial Information Unit, which will ensure the effective implementation of the laws related to combating money laundering and terrorism financing.

Conclusion

This new law is a significant step forward in Mongolia’s efforts to combat money laundering and terrorism financing, and it demonstrates the country’s commitment to preventing these illegal activities.