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Mongolia’s Anti-Money Laundering Regulations: A Guide to Compliance
Ulaanbaatar, Mongolia - In a bid to combat money laundering and terrorist financing, the Mongolian government has implemented strict regulations on financial institutions and businesses. As part of these regulations, companies are required to conduct thorough identity verification processes for customers.
Identity Verification: A Multi-Instance Process
According to Mongolian regulations, identity verification is not a one-time process, but rather a multi-instance process that must be conducted in multiple instances as per the requirements. This includes onboarding new customers and applying identity verification procedures when dealing with transaction data.
Timing of Verification
The timing of identity verification depends on the company’s requirements and its conveyance to Shufti Pro. Companies are required to conduct identity verification:
- When onboarding a new customer
- When dealing with high-risk transactions or situations where an individual may represent above normal exposure of money laundering related threats
Politically Exposed Persons (PEPs) and Enhanced Due Diligence Measures
As part of the Enhanced Due Diligence requirements under Mongolian regulations, companies are required to determine if their customers are:
- Politically Exposed Persons
- Hold public office
- Exhibit a higher risk profile
Shufti Pro’s AML Screening service helps companies fulfill these obligations by screening an individual’s selected ID attributes against watchlists of global regulatory authorities.
Reliance on External Services
Mongolian regulations allow companies to seek the services of third-party providers for applying measures of due diligence. However, companies remain liable for maintaining all compliance and fulfilling Anti-Money Laundering (AML) and Know Your Customer (KYC) obligations.
Record Retention
As per Mongolian regulations, companies are required to retain data for not less than five years as part of their AML and KYC obligations for due diligence. Companies are also liable to collect all necessary information from third-party providers without undue delay.
Conclusion
In conclusion, Mongolia’s anti-money laundering regulations require financial institutions and businesses to conduct thorough identity verification processes and apply Enhanced Due Diligence measures when dealing with high-risk transactions or situations. Companies must also maintain records of their compliance for a minimum of five years. Shufti Pro is committed to helping companies comply with these regulations and reduce the risk of money laundering and terrorist financing.