Financial Crime World

Mongolia Tightens Grip on Financial Crime with Stringent Laws and Regulations

Ulaanbaatar - In an effort to combat financial crime and promote transparency in public finance, Mongolia has implemented a robust legal framework to prevent corruption, money laundering, and terrorism financing.

Mongolia’s anti-financial crime laws and regulations are designed to ensure that businesses and individuals operate with integrity and accountability. At the heart of these efforts is the Law on Combating Money Laundering and Terrorism Financing, which sets out strict rules for financial institutions and other organizations to prevent the laundering of funds derived from criminal activities.

Key Laws and Regulations

  • Law on Anti-Corruption: Establishes procedures for reporting and investigating allegations of corruption.
  • Law on Civil Service: Sets out rules for the hiring and firing of civil servants.
  • Law on Regulation of Public and Private Interests and Prevention of Conflicts of Interest in Public Service: Requires public officials to disclose their financial interests and prohibits them from engaging in activities that could compromise their objectivity.

Corporate Governance Laws

Mongolia’s corporate governance laws are designed to promote transparency and accountability. The Corporate Governance Code sets out standards for companies to follow, including:

  • Requirements for board diversity
  • Disclosure of transactions with related parties
  • Internal controls

Regulatory Bodies

To oversee the implementation of anti-financial crime laws and regulations, Mongolia has established a range of regulatory bodies, including:

  • Financial Regulatory Commission: Responsible for licensing and supervising financial institutions.
  • Mongolian Stock Exchange: Regulates securities trading.

Investment Laws

The country’s investment laws are designed to promote transparency and accountability in foreign investment. The Law on Concessions sets out rules for the award of concessions, while the Government Regulation on Investment Agreement requires foreign investors to disclose their ownership structures and financial information.

International Cooperation

Mongolia has also committed to international cooperation in combating financial crime by signing several major treaties and agreements, including:

  • United Nations Convention Against Corruption
  • Financial Action Task Force (FATF) Recommendations

Conclusion

Mongolia’s anti-financial crime laws and regulations demonstrate the country’s commitment to promoting transparency, accountability, and integrity in public finance. By implementing these laws and regulations, Mongolia aims to create a business environment that is attractive to foreign investors and confident of its ability to combat financial crime.