Customers’ Data Protection: A New Era in Financial Transparency
Mongolia has taken a significant step towards curbing money laundering and terrorism financing by introducing new regulations that require financial institutions to keep records of customers for at least five years after the transaction or account closure. The Financial Information Unit (FIU) will have access to this information to analyze and disseminate it to law enforcement authorities.
Financial Institutions Must Comply
According to Article 4 of the Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) Law, financial institutions must implement an internal monitoring program to prevent money laundering and terrorism financing. This program will include measures such as:
- Customer due diligence
- Risk assessment
- Suspicious transaction reporting
Customer Data Protection
The FIU has been granted the authority to receive information related to money laundering, related crimes, and financing of terrorism from financial institutions. The agency will analyze this information and disseminate it to law enforcement authorities if necessary.
Travelers Must Declare Cash Transactions
In an effort to prevent cash smuggling, travelers carrying more than MNT15 million or equivalent amount of foreign currency, bearer negotiable instruments, or e-money across the Mongolian border must declare their transactions in customs declaration forms. The Mongolian Customs General Administration will consolidate these declarations and transmit them to the FIU every month.
Financial Information Unit
The FIU is an autonomous and independent agency responsible for receiving, analyzing, and disseminating information related to money laundering, related crimes, and financing of terrorism. The agency will work closely with law enforcement authorities to prevent and investigate financial crimes.
These new regulations demonstrate Mongolia’s commitment to combating money laundering and terrorism financing, ensuring a safer and more transparent financial system for its citizens and the international community.