Financial Crime World

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DBA and ITC Collaborate on Anti-Money Laundering and Combating Financing of Terrorism Project

In a significant development, the Development Bank of Asia (DBA) and the International Technical Cooperation (ITC) have agreed to work together on a project aimed at strengthening Mongolia’s anti-money laundering (AML) and combating financing of terrorism (CFT) regime.

Project Overview

The two organizations collaborated to deliver a technical assistance (TA) project, which was launched in 2005. The project aimed to help Mongolia strengthen its AML/CFT framework by:

  • Developing an effective system for reporting suspicious transactions
  • Improving the capacity of financial institutions to identify and report suspicious activities
  • Enhancing the country’s ability to detect and prevent money laundering and terrorist financing

Project Achievements

The project achieved several milestones, including:

  • Development of a blueprint for IT services
  • Preparation of a strategic plan
  • Establishment of the Financial Intelligence Unit (FIU)

However, despite the progress made, the enacted law has significant shortcomings that deviate from international standards. The team was unable to provide the level of training intended due to the lack of an enabling legislative framework.

Challenges and Findings

The project’s outcomes have been affected by:

  • Lack of political commitment and momentum in some quarters
  • Hinderance in establishing the AML/CFT system

Despite these challenges, the team detected a greater interest in the legislation and its implementation during their third visit.

Team Deployment and Activities Undertaken

The project team consisted of two international consultants:

  • John Broome (Team Leader)
  • Hugh Dixon (Financial Sector Expert)

They were joined by Pat O’Sullivan (FIU Expert) on September 3, 2006. The team worked closely with local counterparts to finalize the project’s activities.

Conclusion

The DBA and ITC’s collaboration has contributed significantly to strengthening Mongolia’s AML/CFT regime. While there are challenges ahead, the project’s achievements demonstrate the potential for further progress in this area.

The team’s findings will be shared with the international community through the APG Mutual Evaluation of Mongolia, which is expected to provide an important impetus for action. The DBA and ITC look forward to continuing their collaboration on AML/CFT projects and contributing to the development of a robust anti-money laundering and combating financing of terrorism framework in Mongolia.