Financial Crime World

Mongolia’s Financial Institution Risk Assessment Underway to Combat Money Laundering and Terrorist Financing

==========================================================

The Mongolian government has committed to implementing the Financial Action Task Force (FATF) International Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) Standards by conducting a National Risk Assessment. This assessment aims to mitigate money laundering and terrorist financing risks by understanding the scale and impact of these crimes, and allocating resources accordingly.

Background

The first National Risk Assessment was conducted in 2016, assessing the risk of money laundering and terrorist financing crime, as well as vulnerabilities in the banking sector, non-banking financial sector, and designated non-financial businesses and professions (DNFBPs). The second assessment is currently underway and is expected to be finalized by 2020.

Composition of Working Group

The Minister of Finance approved the composition of a working group to conduct and report on the National ML/TF Risk Assessment as an appendix to decree No.20 dated January 31, 2020. A total of nine sub-working groups were established to assess specific sectors and vulnerabilities, including:

  • ML threat assessment
  • National vulnerability
  • Banking sector vulnerability
  • Securities sector vulnerability
  • Insurance sector vulnerability
  • Other financial institutions vulnerability
  • DNFBP vulnerability
  • TF risk assessment
  • Financial inclusion product risk assessment
  • Non-profit organizations vulnerability

Objectives of the National Risk Assessment

The National Risk Assessment will help governments, regulatory, oversight, and supervisory authorities prioritize and efficiently allocate resources to high-risk sectors and geographies. The report is expected to develop risk-based approaches and action plans to combat money laundering and terrorist financing.

Responsibility of Financial Intelligence Unit (FIU)

The FIU is responsible for organizing the National Risk Assessment, which is a requirement for Mongolia’s membership in the Asia-Pacific Group on Money Laundering (APG), a FATF-style regional organization. The country has expressed its full commitment to implementing this standard.

Access the Report

Access the Mongolia National Risk Assessment of Money Laundering and Financing of Terrorism report here.