Mongolia’s New Legislation Bolsters Fight Against Money Laundering and Terrorism Financing
Date: June 1, 2013 Location: Ulaanbaatar, Mongolia
Passing of New Anti-Money Laundering and Terrorism Financing Law
Mongolia’s Parliament, The Great Khural, passed the long-awaited Law on Combating Money Laundering and Terrorism Financing on May 31, 2013. This legislation aims to establish a legal framework for organizing preventive measures against money laundering and terrorism financing in the country.
Key Provisions in the New Law
Chapter One: General Provisions
- Outlines the purpose and legislation basis of the law
- Defines key terms, including “money laundering,” “terrorism financing,” “cash transaction,” “non-cash transactions,” and “politically exposed person”
Entities’ Responsibilities:
- Bank, non-bank financial institutions
- Insurance companies
- Investment funds
- Licensed securities market entities
- Savings and credit cooperatives
- Real estate agents
- Notaries
New Regulations for Reporting and Prohibitions:
- Report transactions as per regulations to the Financial Information Unit
- Prohibited from opening anonymous or numbered accounts
Customer Identification:
- Verify customers’ information before business relations or transactions
- Retain customer information and records of transactions for at least five years
Monitoring of Transactions:
- Monitor transactions with no apparent economic or lawful purpose
- Special monitoring for transactions involving politically exposed persons or Mongolia’s strategic deficient partners
Reporting Transactions:
- Report cash and foreign transactions above 20 million togrogs to the Financial Information Unit within five working days
- Report suspicious transactions or transactions related to money laundering or terrorism financing to the Financial Information Unit within 24 hours
The Financial Information Unit’s Role
Responsible for:
- Receiving, analyzing, and disseminating reported information
- Sharing information with competent law enforcement authorities
- Collaborating with similar foreign institutions and international organizations
Currency Transportation Across Borders
Reinforces the need for travelers to:
- Declare cash and bearer negotiable instruments
- Bear e-money, and other monetary instruments in declaration forms