Mongolia Passes Law to Combat Money Laundering and Terrorism Financing

Ulaanbaatar, Mongolia - A New Era in Combating Financial Crimes

The Mongolian government has passed a new law aimed at combating money laundering and terrorism financing. The law, which comes into effect on [insert date], requires financial institutions and other entities to report suspicious transactions and implement measures to prevent the misuse of their services.

Key Provisions of the Law

Suspicious Transaction Reporting: Financial institutions and other entities must report suspicious transactions to the Financial Information Unit.
Prevention Measures: Entities must implement measures to prevent the misuse of their services, including an Internal Monitoring and Risk Management Program aimed at combating money laundering and terrorism financing.
Confidentiality: Entities submitting reports will maintain confidentiality regarding the information submitted, unless otherwise specified by law.

Exemptions and Liability

Exemptions from Liability: Entities that submit reports to the Financial Information Unit and competent authorities are exempt from liability for reporting suspicious transactions.
No Breach of Confidentiality: Submitting reports will not be deemed a breach of banking, professional, customer, business entity or organization secrecy confidentiality.

Transportation of Cash

Cash Declaration: Travelers carrying more than MNT15 million or equivalent amount of foreign currency, bearer negotiable instruments, e-money must declare faithfully in customs declaration forms.

Financial Information Unit

Autonomous Agency: The Financial Information Unit is responsible for receiving information related to money laundering, analyzing it, and disseminating to competent law enforcement authorities if necessary.
Training Programs: The unit will provide training programs for employees of entities described in Paragraph 4.1 on combating money laundering and terrorism financing.

Penalties for Non-Compliance

Fines and Criminal Liability: Failure to comply with the provisions of the law may result in fines and criminal liability.

Copies of the law and related documents will be sent to:

Financial institutions
Government agencies responsible for combating money laundering and terrorism financing
International organizations working on anti-money laundering and counter-terrorism financing

Conclusion

The Mongolian government is committed to implementing this law and ensuring its effective implementation in order to combat money laundering and terrorism financing.