Financial Crime World

Title: Mongolia Makes History as First Country in Asia Pacific to Fully Adopt FATF Recommendations

Subtitle

In a significant step towards strengthening its financial regulatory framework, Mongolia has become the first country in the Asia Pacific region to fully comply with all the recommendations of the Financial Action Task Force (FATF).

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Mongolia’s commitment to combatting financial crimes has reached new heights with its implementation of all 40 FATF recommendations. This achievement underscores Mongolia’s dedication to maintaining a robust anti-money laundering (AML) and counter-terrorist financing (CTF) regime, and its determination to eradicate illicit financial activities.

About FATF

  • The FATF is an international organization founded in 1989 that sets standards and enforces measures to prevent and counter money laundering, terrorist financing, and proliferation financing.
  • It works closely with governments, international organizations, and the private sector to create a global network that strengthens the fight against financial crimes.

Evaluation Process

  • Following a rigorous evaluation process, Mongolia was deemed compliant with all FATF recommendations.
  • The country’s financial sector overseers have put in place measures to:
    • Enhance customer due diligence
    • Reduce the risk of Money Service Business (MSB) use for illicit activities
    • Ensure transparency in the financial system.

Initiatives to Bolster Financial Crime Defenses

  • Mongolia has established a Financial Intelligence Unit (FIU) to serve as a central agency for the collection, analysis, and dissemination of money laundering and terrorist financing-related information.
  • The FIU plays a crucial role in facilitating international information exchange, improving coordination among law enforcement agencies, and strengthening the country’s regulatory framework.

FATF Compliance Journey

  • Mongolia’s journey towards FATF compliance began in 2014 when it was identified as having strategic deficiencies in its AML/CTF system.
  • The country has taken significant strides to address these concerns, focusing on increasing the capacity of its financial regulators and law enforcement agencies.

Regional Leader in Financial Crime Prevention

  • The FATF’s endorsement of Mongolia’s efforts provides an excellent opportunity for the country to position itself as a regional leader in implementing effective financial crime prevention regulations.
  • This accomplishment is a testament to the government’s dedication to fostering a reliable and transparent financial system that supports economic growth and development.

Quotes

“Reaching this milestone is a significant achievement that demonstrates Mongolia’s commitment to combating financial crimes,” stated an official from the Mongolian Ministry of Finance. “We are proud of our efforts and look forward to working with our international partners to advance the global fight against money laundering, terrorist financing, and proliferation financing.” “Mongolia’s compliance with all FATF recommendations underscores its commitment to maintaining a resilient financial system and its efforts to enhance its economic standing in the global community,” shared the FATF Chair.

Background Information

The Financial Action Task Force (FATF) is an inter-governmental organization established in 1989 to develop and implement measures to counter money laundering, terrorist financing, and proliferation financing. It sets standards for national regulations, monitors their implementation, and provides technical assistance and capacity building to member jurisdictions.

Contact Information

For more information on Mongolia’s achievement, please visit the Mongolian Ministry of Finance website at www.mof.gov.mn/en/. For queries related to the FATF and its recommendations, please reach out to the FATF Secretariat at info@fatf-gafi.org.