Suspicious Transactions and Financial Intelligence Unit Emerge as Key Concerns in Mongolian Anti-Money Laundering Efforts

Strengthening Anti-Money Laundering Regime in Mongolia

In a move to enhance its anti-money laundering (AML) regime, the Mongolian government has established a financial intelligence unit and implemented a comprehensive draft of key responsibilities for this entity. The country has also launched specialized training programs for staff of key institutions responsible for implementing an effective AML regime.

Addressing Concerns over Suspicious Transactions

According to sources, the government’s efforts come in response to concerns over suspicious transactions and the need to develop a robust system to monitor these activities. A recent analysis revealed that the previous threshold for reporting cash transactions was too high, with only a handful of transactions per day exceeding the MNT 20,000,000 mark.

Developing Regulations and Training Staff

The analysis also highlighted the importance of developing regulations to complement the law, as well as providing training for staff involved in implementing the AML regime. The government has acknowledged the need for significant changes to the law if it is to meet accepted international standards.

International Standards and Recommendations

In a recent report, experts noted that while they had intended to provide training programs, the lack of a functioning law and the focus on establishing a financial intelligence unit meant that this activity was delayed. However, the team was able to develop a strategy for implementing an effective AML regime in Mongolia and incorporated it into a Strategic Plan.

The report also emphasized the importance of considering the FATF Forty Recommendations on Money Laundering and the FATF 9 Special Recommendations on Terrorist Financing when developing recommendations for changes to the draft law. These international standards represent the accepted benchmarks for AML regimes worldwide.

Shortcomings in Enacted Law

Despite these efforts, experts noted that there are still significant shortcomings in the enacted law, which deviates from the earlier draft in several respects. The government has been urged to address these issues to ensure its AML regime meets international standards.

Asia-Pacific Group’s Assessment

In related news, a recent on-site visit by the Asia-Pacific Group (APG) to assess Mongolia’s anti-money laundering and combating the financing of terrorism (AML/CFT) regime highlighted concerns over the country’s lack of political commitment to implementing effective reforms. The visit emphasized the need for urgent action to establish a robust AML/CFT system in Mongolia.

Path Forward

Experts have hailed the recent passage of the AML law as a positive step forward, but cautioned that more work needs to be done to ensure its effective implementation. As the country continues to grapple with these challenges, it remains to be seen whether Mongolia can successfully overcome its AML weaknesses and establish a robust regime capable of combating money laundering and terrorist financing.