MONGOLIA'S NATIONAL PROGRAM FOR COMBATING MONEY LAUNDERING AND TERRORIST FINANCING WAS APPROVED

9/29/2022

Mongolia was included in the FATF’s list of jurisdictions with strategic AML/CFT deficiencies or the so-called “Grey list” with only 6 action items in 2019. However, Mongolia was able to get off the “Grey List” in 2020 within 1 year with 37 out of 40 FATF Recommendations rated as compliant.

FATF Recommendation 1 requires countries to assess their risk of money laundering and terrorist financing, and Recommendation 2 requires countries to adopt national policies and measures based on the results of the risk assessment. In this regard, Mongolia's mutual evaluation report recommended that our country approve and implement national policies and strategies to combat money laundering and terrorist financing. In addition, according to the Law on Combating Money Laundering and Financing of Terrorism, it is prescribed to develop and approve national policies and programs based on the results of national risk assessment, and take measures to ensure their implementation.

Therefore, under the leadership of the Ministry of Finance, 11 sub-working groups were formed to assess the risk of money laundering and terrorism financing in each sector. 128 employees of 52 organizations participated in the National Risk Assessment and developed a National Program that defined the necessary measures to be taken to improve weak and weak points in each financial sector.

In the development of the national program, the government of Mongolia hired an external consultant within the framework of the Bank of Mongolia with the help of a highly discounted loan from the "Strengthening Budget and Financial Stability Project" to carry out the following tasks. It includes:

  • Review the ML/TF threats and inherent vulnerabilities based on the National Risk Assessment and assess Mongolia’s capacity to combat ML/TF at the national level
  • Conduct a gap analysis to identify shortcomings in relation to the technical requirements of the FATF Recommendations and Immediate Outcomes as well as obstacles to the effectiveness of the AML/CFT regime or its individual components.
  • Analyze the existing laws, regulations, and other enforceable means against current international AML/CFT standards and provide comprehensive recommendations in achieving full compliance, such as drafting or developing new laws or legal amendments to remedy any identified deficiencies.

As a result of these efforts and the cooperation of the National Council for Combating Money Laundering and Terrorist Financing, the Government of Mongolia's National Program for Combating Money Laundering and Terrorist Financing was approved on July 5, 2022.

By implementing the anti-money laundering and terrorist financing program, it is possible to develop a stable and accessible financial system connected to the international market by strengthening the anti-money laundering and anti-terrorist financing system of Mongolia in accordance with international technical implementation and efficiency standards. In addition, internal and external cooperation in combating money laundering, financing of terrorism, and the financing proliferation of weapons of mass destruction will expand, coordination of work between the government and the private sector will be improved, and regulatory agencies will be able to allocate resources appropriately and concentrate resources in risky areas.

In addition, this program has an important significance to ensure the implementation of "Vision-2050", the five-year development direction of Mongolia from 2021-2025, and the government's action program for 2020-2024.

NEWS
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The Ministry of Labor and Social Protection and SCE signed a cooperation agreement. It officially launched the operation as part of the World Bank-funded SFFS project. 

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The operation of MOF databases have been improved and an integrated database management system has been introduced

11/2/2022

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THE FINANCIAL REGULATORY COMMISSION OF MONGOLIA SIGNED THE “MULTILATERAL MEMORANDUM OF UNDERSTANDING FOR SUPERVISORY COOPERATION”

10/26/2022

Mr Bayarsaikhan Dembereldash, Chairman, Financial Regulatory Commission of Mongolia participated in the 47th Annual Meeting of the International Organization of Securities Commissions (IOSCO) from 17 to 20 October, in Marrakech, Morocco. During the Annual Meeting, member authorities have discussed the previous year’s achievements, policies, recommendations, and challenges for accelerating the development of the capital market. Particularly, delegations exchanged views on the supervision of technology-based financial activities and the principles of sustainable finance including green finance, and policy solutions for carbon reduction. 

The discussion on draft revisions to the Law on Insurance, the Law on Insurance Intermediation, and the Law on Drivers’ Insurance

10/18/2022

Under the "Strengthening Budget and Financial Stability Project" implemented in cooperation with the World Bank, the Ministry of Finance, the Financial Regulatory Commission /FRC/, and the Mongolian Insurance Association have prepared the draft revisions to the Law on Insurance, the Law on Insurance Intermediation, and the Law on Drivers’ Insurance. Within the scope of gradually implementing legal reforms in the insurance sector, in accordance with the relevant policy and planning of the Parliament and Government of Mongolia, the draft revisions of the laws were published on the Ministry of Finance’s website in June 2022 and have carried out the public discussion step electronically, thus reflected 277 suggestions received from the professional associations, stakeholders and individuals. The revised versions of the laws were prepared for the next round of discussions. 

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