European Commission Removes Mongolia from List of High-Risk Third Countries for Money Laundering

Background

• The European Commission (EC) has announced the removal of Mongolia from the list of high-risk third countries with strategic deficiencies in anti-money laundering and countering terrorist financing (AML/CFT) regulations.
• Directive (EU) 2015/849 requires the Commission to identify countries with strategic deficiencies in their AML/CFT regimes that pose significant threats to the EU’s financial system.

Reason for Removal

• Mongolia, previously identified as a high-risk country under Regulation (EU) 2016/1675, has now addressed the strategic deficiencies.
• The country provided a written high-level political commitment to FATF and developed an action plan to meet the required standards.

Assessment and Findings

• The European Commission’s assessment found that Mongolia no longer has strategic deficiencies in its AML/CFT regime.
• The Financial Action Task Force (FATF) welcomed Mongolia’s progress and reported that the country has establish the legal and regulatory framework to meet its action plan commitments.

Implications

• This decision marks the end of the FATF’s monitoring process for Mongolia.
• Mongolia will continue working with FATF-Style Regional Bodies to further improve its AML/CFT regime.
• The regulation amending the Delegated Regulation (EU) 2016/1675 has been adopted and entered into force, removing Mongolia from the EU’s high-risk third countries list.

Conclusion

• Mongolia’s removal from the EU’s high-risk third countries list signifies its commitment to improving its AML/CFT regime and strengthening its financial system.
• International cooperation and the role of institutions like the FATF in promoting effective AML/CFT regimes globally is underscored by this decision.