Ad Invitation

A. BACKGROUND 

Correspondent banking is an essential component of the global payment system, especially for cross-border transactions. Through correspondent banking relationships, banks can access financial services in different jurisdictions and provide cross-border payment services to their customers, supporting international trade and financial inclusion.

According to studies conducted by international organizations, the decline in the number of correspondent banking relationships is continuing across the world. This indicated the several causes of declining, including lack of profitability in certain foreign correspondent banking relationships, overall risk appetite, changes to legal, regulatory, or supervisory requirements, structural changes, etc. Under the Financial Action Task Force (FATF)’s international standards for anti-money laundering and combating the financing of terrorism, countries, while implementing a risk-based approach, conducted de-risking measurements of correspondent banking relationships, including termination.  

The majority of Mongolia’s export and import transactions are processed through the banking system. In terms of inflows and outflows of foreign transactions, in 2021, the US dollar accounts for most total inflows and outflows, accounting for 82 percent of inflows and 67 percent of outflows.

Since 2013, foreign banks have intensively terminated their correspondent banking relationships with Mongolian commercial banks and closed their Nostro accounts. This points out a variety of driving factors, including FATF identifying Mongolia as a jurisdiction having anti-money laundering, countering the financing of terrorism deficiencies, and changes to legal, regulatory, or supervisory requirements in the correspondent’s jurisdiction that have implications for maintaining and lack of profitability. Shrinking correspondent banking relationships increases the number of transferring banks, transaction costs, and time, reducing financial inclusion and adversely affecting foreign trade. 

In this context, under the World Bank project, the Bank of Mongolia is looking for an experienced local consultant who specializes in correspondent banking and has experience on projects to support and improve relationships of cross-border payments. 

B. OBJECTIVE OF THE ASSIGNMENT

The main objectives of this assignment are to analyze the current and past conditions of correspondent banking relationships by evaluating the policies of Mongolian commercial banks and their challenges in establishing new relationships and to prepare contingency action plan proposals in terms of enhancing relationships with foreign banks for our domestic banks, regulatory authority, and policymakers.

C. SCOPE OF WORK

The consultant should provide an approximate outline of work for a consultancy and develop and propose a detailed project plan during the tender process.

The consultant will execute the following tasks but not limited to:

D. DELIVERABLES

The consultant shall deliver the following final deliverables in English and get approval from the Client:

1. Mission One:

a. Report on evaluation of the decline of correspondent banking relationships.

b. Report of current legal and policy environment of correspondent banking relationship and its comparison with comparable jurisdictions. 

c. Report on best /preferred solutions and recommendations for banks, regulatory authorities, and policymakers in terms of establishing and expanding correspondent banking relationships with international financial institutions. 

d. Proposal questionnaire of correspondent banking and other relevant entities /quarterly/.

2. Mission Two:

a. Proposal for improving the legal and regulatory environment in terms of improving correspondent banking relationships.  

b. Contingency plan and action plan for establishing and expanding correspondent banking relationships.

c. Presentation on research findings and further learning material in line with project objectives.

E. CONSULTANT’S QUALIFICATIONS/SELECTION CRITERIA

Consultant with proficiency in banking

- At least 7 years of professional experience in the banking sector, with knowledge of correspondent banking and bank compliance processes. 

- Postgraduate degree in Economics, Finance, Banking, or International business law

- Experience working internationally or in an international organization will be an advantage

- Experience in the AML/CFT field is required 

- Fluent in Mongolian and English

F. SUPERVISION AND REPORTING

The consultant will report directly to the Financial Information Unit of the BOM and will work on technical matters related to the assignment on a day-to-day basis with the officials appointed by the Head of FIU Mongolia. All information provided to the consultant will be regarded as strictly confidential and not be shared with any outside individuals or third-party organizations. The consultant will sign the Confidentiality Statement provided by the BOM, which specifies the legal responsibilities regarding confidentiality.

G. CONTRACT DURATION 

The total duration of the consultancy service is estimated to be 2 months. The assignment is expected to commence in March 2023. The consultancy service will consist of one two-week mission and one one-week mission of on-site and off-site support for the Client during the contract duration. If any task is not completed and approved by the Client within the agreed-upon timeline, consultants should complete the tasks without any additional cost.

H.    INSTITUTIONAL ARRANGEMENTS

The Client would be able to provide office space, and the consultant is expected to bring their computer equipment. During the training, the Client will provide a venue, laptop, projectors, and other equipment as necessary.  

If you possess the above qualifications, please submit the following documents via email to procurement_sgm@sffs.mn. The email subject should be as "National consultant - C5/CS/021"

1. Cover letter indicating why she/he considers her/himself suitable for the position.

2. Detailed CV highlighting relevant skills/experience.

3. Copy of diplomas or certificates; and,

4. Two (2) reference letters from the previous last two employers no later than 15:00 PM, March 31, 2023.

The consultant will be selected in accordance with the World Bank’s Procurement Regulations for IPF Borrowers (July 2016).

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications will not be considered for evaluation. Only the selected candidates will be contacted. Address for submission of Expression of Interest: Ms.Zolzaya, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Room #205, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement_sgm@sffs.mn

Contact Info

70120582

70120582