Financial Crime World

Mongolia Financial Institution Compliance Scores High in FATF Follow-Up Report 2023

Introduction

Ulaanbaatar, Mongolia - The Financial Action Task Force (FATF) has released its Follow-Up Report on Mongolia’s progress in implementing the technical requirements of the FATF Recommendations. According to the report, Mongolia has made significant strides in strengthening its financial institution compliance.

Key Areas of Compliance

The report highlights Mongolia’s compliance with several key areas, including:

  • Risk Assessment and Risk-Based Approach: Mongolia has demonstrated a strong risk assessment process and applies a risk-based approach to combat money laundering and terrorist financing.
  • National Cooperation and Coordination: The country has shown effective national cooperation and coordination between law enforcement agencies, financial intelligence units, and other relevant authorities.
  • Confiscation and Provisional Measures: Mongolia has implemented confiscation and provisional measures related to money laundering and terrorist financing in line with international standards.
  • Targeted Financial Sanctions: The country has implemented targeted financial sanctions related to terrorism and terrorist financing effectively.
  • Regulation and Supervision of Financial Institutions: Mongolia has demonstrated a robust regulation and supervision of financial institutions, ensuring that they are compliant with the FATF Recommendations.

Evaluation Results

Mongolia’s compliance with the FATF Recommendations was evaluated in 39 areas, including:

  • Customer Due Diligence
  • Record Keeping
  • Internal Controls

The report noted that Mongolia is “largely compliant” or “compliant” in most areas, with only a few areas identified for improvement.

Strengthening Financial Intelligence and International Cooperation

The report praised Mongolia’s efforts to strengthen its financial intelligence unit and provide guidance and feedback to financial institutions. Additionally, the country has demonstrated a commitment to international cooperation, including:

  • Mutual Legal Assistance: Mongolia has established mutual legal assistance treaties with other countries.
  • Extradition Treaties: The country has also signed extradition treaties with other nations.

Roadmap for Further Improvement

While there are still some areas where Mongolia can improve, the FATF Follow-Up Report 2023 is a significant achievement for the country’s financial regulatory authorities. The report provides a roadmap for further improvements and reinforces Mongolia’s commitment to combating money laundering, terrorist financing, and proliferation financing.

Government Response

The Mongolian government has welcomed the report’s findings and pledged to continue its efforts to strengthen its financial institution compliance. “We are committed to implementing the FATF Recommendations in full and ensuring that our financial system is robust and secure,” said a government spokesperson.