Financial Crime World

Mongolia Takes Steps Forward in Combatting Money Laundering and Terrorism Financing with New Strategy

Mongolia’s financial sector faces increasing threats from Money Laundering and Terrorism Financing (ML/TF) crimes, making it essential for the country to strengthen its anti-ML/TF framework in line with international standards. Since the adoption of the revised Anti-Money Laundering and Countering Terrorism Financing (AML/CFT) law in 2013, international organizations have continued to urge Mongolia to improve its legal framework and capacities.

New National Strategy

On May 17, 2017, Mongolia approved Government Decree No.143, outlining the country’s new National Strategy for Anti-Money Laundering and Countering Terrorism Financing. This strategy aims to:

  1. Ensure the safety and security of Mongolia’s national economic system.
  2. Maintain the stability of the financial sector.
  3. Establish and develop an AML/CFT system that meets international standards.

Objectives

Mongolia’s ambitious National Strategy consists of several important objectives:

  1. Improving international coordination and cooperation: among relevant agencies.
  2. Developing a systematic risk assessment methodology: and assessing the risk of ML/TF crimes across different sectors.
  3. Increasing awareness and prevention measures: among financial institutions, non-financial businesses, and professional service providers.
  4. Strengthening legal frameworks: in compliance with FATF Recommendations.
  5. Improving supervision, investigation, and confiscation capacities.
  6. Enhancing the legal framework for international cooperation: to effectively respond to ML/TF threats.
  7. Strengthening the AML/CFT capacity of competent organizations.

New Measures and Collaborations

To achieve these objectives, the Strategy outlines several new measures and collaborations:

  1. Strengthening the Cooperation Council’s role: in administration and coordination.
  2. Enhancing collaboration: between the Cooperation Council and the National Counter-Terrorism Coordinating Council (NCTCC).
  3. Reflecting AML/CFT measures: in different sector policies and operations.
  4. Developing a national ML/TF crime risk assessment methodology: and conducting sector-specific assessments.
  5. Launching awareness-raising and learning programs: for officers in supervisory, investigative, and executive organizations.
  6. Providing training: to target sectors through the media and increasing the number of prevention and mitigation measures.

Funding and Future Developments

The National Strategy for Anti-Money Laundering and Countering Terrorism Financing in Mongolia will be financed through state and local budgets, funds and loans provided by international organizations and donor countries, and other sources. The strategy will be implemented during the 2017-2019 period. By achieving the outlined objectives, Mongolia aims to:

  1. Improve coordination and cooperation among stakeholders.
  2. Enhance awareness and understanding of ML/TF prevention.
  3. Strengthen legal frameworks, investigation, and supervision capacities.

Conclusion

This new strategy for anti-money laundering and countering terrorism financing in Mongolia signals a strong commitment from the government to address these growing threats. The strategic initiatives outlined in the National Strategy will be crucial in strengthening Mongolia’s ability to combat ML/TF crimes and ensure the long-term financial stability and security of the country.