Financial Crime World

Mongolia Toughens AML Regulations, Banks Face Enhanced Supervision

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Strengthening Efforts Against Money Laundering and Terrorism Financing

Mongolia’s Anti-Money Laundering Division has outlined a range of measures aimed at ensuring banks comply with relevant laws and regulations to strengthen its efforts against money laundering, terrorism financing, and the proliferation of weapons of mass destruction.

Risk-Based Supervision

The division will conduct risk-based supervision on banks in these areas, focusing on assessing their:

  • Business risk
  • Internal control systems
  • Exposure to money laundering, terrorism financing, and proliferation financing

These assessments will be used to determine the direction, scope, and frequency of on-site examinations.

Responsibilities of the Anti-Money Laundering Division

The division is responsible for:

  • Conducting integrated risk assessments
  • Reviewing and introducing updated requirements and international standards for anti-money laundering, combating terrorism financing, and proliferation financing
  • Taking enforcement actions against detected violations and deficiencies

Ensuring Compliance with Relevant Regulations

Mongolia’s Anti-Money Laundering Division ensures banks fulfill their obligations under the Law on Combating Money Laundering and Terrorism Financing, the Law on Countering Proliferation of Weapons of Mass Destruction and Terrorism, and other relevant regulations.

These regulations include:

  • On Combating Money Laundering and the Financing of Terrorism law
  • On Countering Proliferation of Weapons of Mass Destruction and Terrorism law
  • Regulation of Preventive Measures on Anti-Money Laundering and Combating Financing of Terrorism
  • Regulation of Onsite Supervision of Banks on Anti-Money Laundering and Combating Financing of Terrorism and Proliferation
  • Regulation of Off-Site Supervision of Banks on Anti-Money Laundering and Combating Financing of Terrorism and Proliferation

Collaboration with Other Agencies

The division will work in conjunction with the Financial Information Unit and the Financial Regulatory Commission to conduct joint examinations of banking union participants.