Groundbreaking System Critical to Combat Terrorism and Serious Crimes

Ulaanbaatar, Mongolia - A cutting-edge system designed to monitor the movements of terrorist persons and investigate serious crimes has been implemented in Mongolia. The system is a critical component of the country’s efforts to combat terrorism financing (TF) and money laundering (ML), as well as other financial crimes.

National Strategy and Action Plan

The Mongolian government approved the AML/CFT National Strategy for 2022-2030, which sets eight strategic objectives aimed at strengthening the country’s anti-money laundering and combating the financing of terrorism framework. The strategy is designed to address deficiencies identified in Mongolia’s Mutual Evaluation Report and implement technical compliance and effectiveness requirements set by the Financial Action Task Force (FATF).

The action plan has been developed based on the findings of the National Risk Assessment of ML/TF, which includes 194 items to meet 48 sub-objectives under eight strategic objectives. The action plan is designed to ensure effective implementation and monitoring of progress.

Digital Nation Initiative

Mongolia’s long-term policy document, “Vision-2050,” sets the goal of becoming a “Digital Nation.” As part of this initiative, the country has implemented a digital system for reporting suspicious transactions and foreign exchange transactions. The system uses blockchain analytics programs to monitor compliance with anti-money laundering and combating the financing of terrorism regulations.

Supervisory Authorities

Mongolia’s supervisory authorities, including the Bank of Mongolia and Financial Regulatory Commission, have continued to conduct risk assessments, on-site and off-site supervision, and monitoring of compliance with AML/CFT and TF obligations. Outreach activities have been organized for reporting entities, disseminating knowledge and feedback. Awareness-raising activities have also been held for the general public.

Regulatory Updates

The Bank of Mongolia has revised its regulations on conducting off-site and on-site AML/CFT/CPF supervision of banks. The updates enable supervisors to update risk assessment tools and procedures on an ongoing basis, expand the scope of on-site supervision, and conduct risk-focused supervision in a more flexible manner.

The Financial Regulatory Commission has also revised its regulation on off-site and on-site supervision for non-banking sector reporting entities in the field of combating ML/TF. The revision aims to improve the comprehensiveness of the regulation and ensure effective application across reporting entities from regulated sectors.

Virtual Asset Service Providers

Mongolia has approved eight regulations related to registration and operational requirements for Virtual Asset Service Providers (VASPs). A total of 11 VASPs have been registered, and the Financial Regulatory Commission is continuously monitoring compliance through on-site and off-site supervision. The commission has also introduced blockchain analytics programs to effectively monitor compliance.

Conclusion

The implementation of this system demonstrates Mongolia’s commitment to combating terrorism financing and money laundering, as well as other financial crimes. The country’s efforts are critical in preventing the misuse of its financial system for illegal activities and maintaining international cooperation in the fight against financial crime.