Financial Crime World

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Mongolia’s Banking Industry Intensifies Anti-Money Laundering Measures

The Anti-Money Laundering Division of Mongolia’s Supervision Department has ramped up efforts to ensure that banks in the country comply with anti-money laundering and terrorism financing regulations. The division is responsible for conducting risk-based supervision on banks to identify potential vulnerabilities in their systems and take corrective action.

Risk-Based Supervision

The division assesses each bank’s business risk by evaluating its:

  • Structure
  • Products and services
  • Delivery channels
  • Scale of operations

This includes examining internal controls and effectiveness in combating money laundering, terrorism financing, and proliferation of weapons of mass destruction.

Integrated Risk Assessments

The division conducts integrated risk assessments to determine the likelihood of money laundering, terrorism financing, and proliferation of weapons of mass destruction activities at each bank. Based on this assessment, the division determines:

  • The direction of on-site examinations
  • The scope of examinations
  • The frequency of examinations

and takes enforcement action for any detected violations or deficiencies.

Regulatory Requirements

The division reviews and updates its requirements, international standards, and regulatory methods to ensure that banks are equipped with the necessary tools to effectively prevent money laundering and terrorism financing. Additionally, the division conducts joint examinations with:

  • The Financial Information Unit
  • The Financial Regulatory Commission

to monitor the activities of participants in the banking union.

Laws and Regulations

Mongolia has enacted several laws and regulations aimed at combating money laundering and terrorism financing, including:

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

Expected Outcomes

The intensified anti-money laundering measures are expected to strengthen Mongolia’s banking industry and enhance its ability to prevent illegal activities. This move is also seen as a step towards increasing transparency and improving the country’s reputation in the international financial community.

Note: I’ve reformatted the article to use markdown headings, subheadings, and bullet points, while maintaining the original content and structure of the text.