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:
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.
DRAFT OF THE MID-TERM ROADMAP TOWARD IMPLEMENTATION OF ACCRUAL BASED IPSAS AND CHART OF ACCOUNTS FOR PUBLIC SECTOR ACCOUNTING BEING DEVELOPED
As part of the Strengthening Fiscal and Financial Stability project, a consulting team has been developing draft of the mid-term roadmap toward implementation of accrual based International Public Sector Accounting Standards (IPSAS), economic classification and chart of accounts for public sector accounting and reporting.
Working on a model for establishing a sustainable Central Provident Fund in Mongolia
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.
DELEGATIONS OF THE FINANCIAL REGULATORY COMMISSION ATTENDED THE IAIS ANNUAL CONFERENCE
Delegations of the Financial Regulatory Commission attended the International Association of Insurance Supervisors (IAIS) Annual Conference, held in Santiago, Chile.
The operation of MOF databases have been improved and an integrated database management system has been introduced
The Financial Information Technology Division of The Ministry of Finance Mongolia is responsible for more than 10 fiscal and financial related important information systems of the government such as Government Financial Management Information System of the Treasury (GFMIS), the financial reporting system of budget organizations (E-Report), the financial reporting system of private organizations (E-Balance), Glass accounting system, Budget planning system, Debt management system, Integrated salary system of civil servants, and etc. Ensuring the security of these systems and the reliable operation of the database is a task that requires many factors such as time, human resources, and technological innovation, and it is not easy to solve it with state budget funds alone. Therefore, under the projects SFFS and SGM, we are working to improve and ensure the reliable operation of the databases of the Ministry of Finance's information systems, and to create an integrated database management system.
THE FINANCIAL REGULATORY COMMISSION OF MONGOLIA SIGNED THE “MULTILATERAL MEMORANDUM OF UNDERSTANDING FOR SUPERVISORY COOPERATION”
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
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.