Financial Crime World

Here is the converted article in Markdown format:

National Data Center Enhances Secure and Efficient Information Exchange

Ulaanbaatar, Mongolia - The National Data Center has enabled secure, efficient, and transparent information exchange among public and private sector institutions, significantly strengthening the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime in Mongolia.

New Laws and Regulations

Recently, the Parliament of Mongolia approved the Law on Regulating Money Loans, which applies to entities that provide collateral loans such as pawnshops. The law requires legal entities with share capital of over MNT 100 million in provincial areas and MNT 300 million in the capital city to register with the Financial Regulatory Commission (FRC).

The AML/CFT law was also amended to include entities providing money loan services, making them reporting entities under Article 4.1.11 of the law.

Improved Reporting and Supervision

To enhance the quality and timeliness of reports received, the FRC has introduced the goAML software developed by the United Nations Office on Drugs and Crimes. With this software, reporting entities can submit suspicious transaction reports using a user-friendly interface.

  • Supervisory authorities, including the Bank of Mongolia, FRC, and professional associations, have continued conducting risk assessments, off-site and on-site supervision, and monitoring compliance with AML/CFT obligations.
  • The goAML software enables efficient and secure information exchange among institutions, enhancing transparency and reducing the risk of money laundering and terrorism financing.

Revised Regulations

The Regulations on Conducting Off-Site and On-Site AML/CFT/CPF Supervision of Banks were revised to enable supervisors to update risk assessment tools and procedures on an ongoing basis. The Bank of Mongolia has also developed a manual on AML/CFT supervision for banking supervisors.

  • The revised regulations improve the effectiveness of supervisory activities, enabling authorities to respond more quickly to emerging risks and threats.
  • The manual provides guidance to banking supervisors, ensuring consistency in their approach to AML/CFT supervision.

Virtual Asset Service Providers (VASPs)

The FRC has approved 8 regulations related to the registration process and operational requirements for VASPs. Eleven VASPs have obtained official registration, while 19 others received rectification notices for failing to meet registration requirements.

  • VASPs are reporting entities under the AML/CFT Law, required to comply with AML/CFT rules, including reporting suspicious transaction reports.
  • The FRC is continuously monitoring registered VASPs through on-site and off-site supervision and has introduced blockchain analytics programs to effectively monitor compliance.

Working Group Established

A working group was established to make amendments to the AML/CFT Preventive Measures Regulation in compliance with the AML/CFT Law and Law on VASP. The working group consists of officials from the Ministry of Justice and Home Affairs, among others.

  • The National Data Center’s efforts have significantly enhanced the efficiency and effectiveness of information exchange, supervisions, and investigations in Mongolia, demonstrating the country’s commitment to combating money laundering and terrorism financing.
  • The working group’s amendments will further strengthen the AML/CFT regime, ensuring that it remains effective in preventing and detecting money laundering and terrorist financing activities.