Financial Crime World

MONGOLIA ESTABLISHES FINANCIAL INFORMATION UNIT TO COMBAT MONEY LAUNDERING AND TERRORISM FINANCING

Ulaanbaatar, May 31, 2013

The Mongolian government has taken a significant step in combating money laundering and terrorism financing by establishing a Financial Information Unit (FIU). The unit will be responsible for receiving, collecting, and analyzing information on financial transactions and reporting suspicious activities to competent authorities.

Structure and Responsibilities

  • The FIU will have supervisors with at least two years of relevant professional experience in banking, finance, or law.
  • The Head of the FIU will be a senior state inspector, and supervisors and analysts will be state inspectors of financial information.
  • The unit will have the power to obtain information from government agencies and perform duties prescribed by the law.

Functions

  • Receive and analyze information on financial transactions
  • Disseminate information to competent authorities
  • Provide feedback on measures taken on suspicious transaction reports
  • Develop methodology for monitoring and detecting suspicious transactions
  • Enhance public awareness to combat money laundering and terrorism financing
  • Monitor entity compliance with obligations under the law
  • Submit an annual report of activities to the Financial Stability Council

Supervision and Regulation

  • The Bank of Mongolia, Financial Regulatory Commission, and FIU will supervise and regulate entities to ensure compliance with their obligations under the law.
  • The units will establish criteria applicable to the law, issue instructions and regulations, and cooperate with other competent authorities.

Database and International Cooperation

  • The FIU will have a unified database of information compiled in accordance with the provisions of the law.
  • The Head of the unit will approve the regulation on storage and use of information in the database.
  • The FIU will cooperate with foreign institutions and international organizations that conduct similar activities and have similar confidentiality requirements imposed by law.

Quotes

“We are committed to combating money laundering and terrorism financing, and establishing the Financial Information Unit is a significant step in this direction. We believe that this unit will play a crucial role in identifying and reporting suspicious financial activities, and we look forward to its effective operation.” - Enkhbold, Speaker of the Great Kural