Financial Crime World

Mongolia Enforces Financial Sanctions to Combat Terrorism and Proliferation of Weapons of Mass Destruction

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The Mongolian government has taken a significant step to prevent terrorism and the proliferation of weapons of mass destruction by implementing financial sanctions in accordance with United Nations Security Council Resolutions.

Background

Financial sanctions are designed to prohibit dealings with assets owned or controlled by designated individuals or entities associated with these threats. The Mongolian government has implemented targeted financial sanctions obligations under the Anti-Terrorism Law and Targeted Financial Sanctions Regulation.

Requirements for Financial Institutions and Designated Non-Financial Businesses and Professions

  • Implement targeted financial sanctions obligations
  • Freeze assets and prohibit provision of financial services to designated persons or entities
  • Establish an adequate compliance program regardless of the risk associated with their customers or products and services

Monitoring Compliance and Reporting

The Financial Information Unit (FIU) monitors compliance and reporting by reporting entities, which must:

  • Report known matches with individuals or entities listed on the Consolidated List
  • Report suspected matches
  • Report any freezing actions taken

Consequences of Non-Compliance

Violations of these requirements can result in:

  • Fines under the Law on Infringements
  • Administrative action, including:
    • Rectification orders
    • Cancellation of special licenses
    • Cancellation or suspension of high-level management officials

Challenging Listing and Request for De-Listing

Designated individuals or entities can:

  • Challenge their listing and request to be delisted
  • Send a delisting request to the UN focal point (for all UN listings) or the General Intelligence Agency (for domestic listings)
  • Make an application to use or deal with frozen assets or access assets or financial services

Key Contacts

  • Financial Information Unit (for reporting entities)
  • General Intelligence Agency (for all others)

The FIU has issued guidelines for reporting entities, which can be accessed on its website.

Conclusion

Mongolia’s targeted financial sanctions regime is designed to prevent the financing of terrorism and the proliferation of weapons of mass destruction. Compliance with these sanctions is crucial in maintaining international peace and security.