Financial Crime World

Mongolia Takes Steps to Combat Money Laundering and Terrorism Financing: New National Strategy Announced

The Government of Mongolia has announced a new National Strategy for Anti-Money Laundering and Countering Terrorism Financing (AML/CFT). The strategy aims to enhance Mongolia’s financial security and ensure compliance with international standards to prevent illegal financial activities.

Threats of Money Laundering and Terrorism Financing

Money laundering and terrorism financing pose a significant threat to:

  1. The global economy
  2. Security

Sources of these illicit financial transactions include:

  • Human trafficking
  • Narcotic drugs sales
  • Illegal arms trafficking
  • Corruption
  • Smuggling
  • Environmental crimes
  • Tax evasion
  • Other criminal activities

Mongolia, with its developing financial sector, has increasingly become a target for money laundering and terrorism financing.

Progress and Challenges

Mongolia’s AML/CFT framework was first evaluated by the Asia/Pacific Group on Money Laundering (APG) in 2006. Since then, Mongolia has made progress, including:

  • Revising its AML/CFT Law in 2013
  • Being removed from the “grey list” by the Financial Action Task Force (FATF) in 2014

However, the APG identified several areas for improvement during its second evaluation in 2016:

  • Strengthening legal frameworks
  • Increasing the capacity of competent authorities
  • Improving public awareness

Primary Objectives

To fully implement the FATF Recommendations and bolster Mongolia’s AML/CFT capacity, the new national strategy’s primary objectives include:

  1. Improving coordination and cooperation among relevant agencies
  2. Developing a risk assessment methodology
  3. Enhancing public awareness
  4. Upgrading the legal framework
  5. Increasing supervision
  6. Improving investigation and detection capabilities
  7. Strengthening international cooperation

Implementation Activities

Under the strategy, various activities will be undertaken:

  1. Establishing a comprehensive administrative and coordination role for the Cooperation Council
  2. Strengthening cooperation between the Cooperation Council and the National Counter-Terrorism Coordinating Council (NCTCC)
  3. Improving national AML/CFT capacity through regional and international cooperation
  4. Developing a national ML/TF crime risk assessment methodology
  5. Improving public awareness
  6. Enhancing the legal framework to investigate and prosecute AML/CFT offenses

Financing

Financing for the strategy will come from:

  • The state and local budgets
  • Funds and loans from international organizations and donor countries
  • Other sources

Oversight

The strategy’s implementation will be overseen by the National Committee, which will coordinate activities, develop the action plan, and conduct annual monitoring and evaluation.

Significance

The new National Strategy for Anti-Money Laundering and Countering Terrorism Financing marks a significant step forward in Mongolia’s efforts to combat these illegal financial activities and establish a strong, secure financial sector.