Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Regulations in Mongolia
These regulations outline the requirements for reporting entities in Mongolia to prevent and detect money laundering and terrorist financing activities.
Customer Due Diligence (CDD)
- Conduct CDD on all customers: Reporting entities must identify and verify customer information.
- Enhanced CDD for high-risk customers: High-risk customers, transactions, and countries/regions identified as high ML/TF risk by the Financial Intelligence Unit (FIU) or supervisory authorities require enhanced CDD.
Enhanced Customer Due Diligence
- Additional information: Obtain additional customer information.
- Senior management approval: Approve business relationships with senior management.
- Higher-level monitoring: Monitor transactions at a higher level.
- Review of CDD requirements: Review CDD requirements on an ongoing basis.
Third-Party Introducers
- Reliance on third parties: Reporting entities may rely on third parties to undertake CDD procedures, but the ultimate responsibility remains with the reporting entity.
- Documentation and availability: Ensure that all information obtained by the third party is sent as soon as practicable, and copies of documents are available upon request. Document arrangements with third-party introducers for review by supervisory authorities.
Correspondent Banking Relationships
- Information about respondent institutions: Obtain information about the respondent institution’s reputation and supervision.
- Evaluation of AML/CFT regulation: Evaluate whether the respondent institution is subject to AML/CFT regulation, supervision, or monitoring, and has customer due diligence procedures in place that are consistent with Mongolian law.
Country Risk
- Countermeasures by FIU or supervisory authorities: The FIU or supervisory authorities may impose countermeasures on transactions associated with countries or regions identified as high ML/TF risk.
- Enhanced CDD and reporting mechanisms: Countermeasures may include requiring enhanced CDD, introducing enhanced reporting mechanisms, refusing establishment of subsidiaries or branches, limiting business relationships or financial transactions, and prohibiting reliance on third parties in high-risk countries.
Record Keeping
- Maintaining customer due diligence records: Reporting entities must maintain records of customer due diligence procedures, including information obtained from third-party introducers.
- Retention period: Records must be kept for at least 5 years after the customer relationship is terminated.