Mongolia’s Financial Transparency Laws Require Customer Account Data Retention

Strengthening Anti-Money Laundering Measures

Ulaanbaatar, Mongolia - To combat money laundering and terrorism financing, Mongolia has introduced laws requiring financial institutions to retain customer account data for at least five years after the date of closure.

Implementation of Internal Monitoring Programs

According to Article 14 of the Anti-Money Laundering (AML) Law, entities specified in Paragraph 4.1 (including banks, credit unions, insurance companies, and other financial institutions) must maintain an Internal Monitoring Program aimed at combating money laundering and terrorism financing. The program must include:

• Procedures for evaluating risks associated with customers, products, services, and delivery channels
• Measures to mitigate those risks
• Customer due diligence and enhanced customer due diligence procedures

Reporting Requirements

Article 7 of the law requires financial institutions to submit information related to money laundering, related crimes, and financing of terrorism to the Financial Information Unit (FIU) within a specified timeframe. The FIU is an autonomous and independent agency responsible for:

• Receiving and analyzing information related to these offenses
• Disseminating information to competent law enforcement authorities
• Identifying and preventing financial transactions linked to money laundering or terrorism financing

Border Declaration Requirements

Article 15 of the law requires travelers carrying more than MNT15 million (approximately USD6,500) in cash or equivalent value in foreign currency, bearer negotiable instruments, or e-money across Mongolia’s borders to declare their assets faithfully in customs declaration forms. The Mongolian Customs General Administration is responsible for:

• Consolidating these declarations
• Transmitting them to the FIU every month

Enhancing Financial Transparency

These measures aim to enhance financial transparency and prevent the misuse of the financial system for illicit activities. The laws also require financial institutions to maintain confidentiality of customer information and report suspicious transactions to the FIU and other competent authorities.

Government Commitment

In a statement, the Mongolian government emphasized its commitment to combating money laundering and terrorism financing, saying that these laws are essential in protecting the country’s financial stability and integrity. A government spokesperson stated:

“The implementation of these laws is crucial in preventing the misuse of our financial system and ensuring that it remains a safe and secure platform for legitimate transactions.”