A. BACKGROUND

Mongolia has received a credit from the International Development Association (IDA) for implementation of the Strengthening Fiscal and Financial Stability (SFFS) project. The Financial Regulatory Commission (FRC) is a beneficiary of the project and is implementing activities under sub-component #C4. The main objective of the Sub-component is strengthening the institutional capacity of the FRC. 

Mongolia became a member of the Asia/Pacific Group (APG) on Money Laundering and an associate member of the Financial Action Task Force (FATF) in June 2004. 

In accordance with APG membership rules, APG members commit to a mutual peer review system, to determine the levels of compliance with the international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards. These peer reviews are referred to as "mutual evaluations". Mutual evaluations involve a desk-based review of the AML/CFT systems of member countries and an on-site visit to the APG member by a team from the APG.

In October 2019, Mongolia made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies. The Anti-Money Laundering Unit (AML unit) under the Supervision Department was established in 2019, and the FRC has successfully demonstrated compliance with Recommendations 14 (Money or value transfer services) and 28 (Regulation and supervision of DNFBP). Within the scope of Mongolia’s action plan from the Joint Group, and in a limited amount of time, the FRC demonstrated vast improvements and compliance within Immediate Outcome 3: FRC and other DNFBP supervisors should understand risks posed by individual institutions and demonstrate that the frequency and intensity of supervision is based on identified risks, and Immediate Outcome 11: Provide evidence of cooperation and coordination between authorities to prevent sanctions from being evaded. 

The FATF’s on-site visit to Mongolia was organized in October 2020; and the results were discussed among its member countries, at the ICRG meeting held in October 2020. As a result, Mongolia was removed from the FATF’s list of jurisdictions with strategic AML/CFT deficiencies. 

Since then, the FRC has been working to strengthen the current AML/CFT system, and improve the levels of technical compliance with respect to the FATF recommendations.  

The FATF will organize an on-site visit to Mongolia in 2023, and the FRC has been preparing for the upcoming mutual evaluation of the implementation of AML/CFT measures in Mongolia. Before the on-site visit, the FRC should provide information on effectiveness - based on the 11 Immediate Outcomes identified in the effectiveness assessment - not less than four months before the on-site and follow-up reports (FURs) to the FATF. It is very important for the FRC to provide a full and accurate description (including examples of information, data, other factors, and supporting documents) that would help to demonstrate the effectiveness of the AML/CFT regime.

Based on the above, the FRC is seeking to hire an experienced international consultant to provide technical inputs in the preparation of various reports - including progress reports, FURs and supporting legislation, and effectiveness reports - for the AML Unit; and to prepare for assessment by the upcoming mutual of Mongolia. 

B. OBJECTIVE OF THE ASSIGNMENT

The purpose of the consultancy is to provide technical inputs in the preparation of reports in English (progress reports, follow-up reports (FURs), effectiveness reports for Immediate Outcomes (IOs) and supporting legislation), and other documents for assessment of the implementation of compliance measures for AML/CFT and FRC’s publication documents including Annual report and Market reviews.

C. SCOPE OF THE WORK

Personnel of the AML unit and the International Cooperation Department of the FRC have been tasked with the primary responsibility for the creation of a range of particular documents. After the preparation of the documents, they will be reviewed by the Consultant and checked for accuracy and consistency related to FATF’s assessment. After any necessary revisions by the department responsible, the Consultant will undertake the following: 

1. Review and edit the annual FUR; 
   
2. Review and edit additional reports in response to comments (from the FATF) on the FUR. These additional reports and comments do not have regular schedules, and will be requested by the APG when necessary; 
3. Review and edit the effectiveness report;
4. Review and edit the effectiveness report summary; 
5. Review supporting documents (including translations of official statements, decrees, regulations and guidelines; in relation to FATF 40 Recommendations) related to the FURs and effectiveness report;
6. Review translations of other publication/s;  
7. Review the FRC Annual Report of 2021; 
8. Review the FRC Semi-annual Market Review of 2022; 
9. Review the FRC Annual Market Review of 2021; 
10. Perform other related duties as assigned; 

D. DELIVERABLES

The Consultant shall facilitate the completion and presentation of the following deliverables for the FRC.

All documents for review will be prepared initially by personnel of the AML unit and the International Cooperation Department of the FRC. The Consultant will advise on improvements and development of the documents (to international standards) and complete final reviews and revisions. 

1. Contract Implementation Plan shall be prepared and approved by the FRC within three working days of the contract being signed; 
2. Completed annual FUR; 
3. Completed additional reports, in response to comments from the FATF on the FUR;
4. Completed annual effectiveness report;
5. Completed effectiveness report summary; 
6. Completed supporting documents (official statements, decrees, regulations and guidelines in relation to 40 Recommendations of the FATF on AML/CTF);
7. Completed other publication/s;  
8. Completed FRC Annual Report of 2021; 
9. Completed FRC Semi-annual Market Review of 2022; 
10. Completed FRC Annual Market review of 2021.  

E. CONSULTANT’S QUALIFICATIONS AND SELECTION CRITERIA

Education: A postgraduate degree in a relevant subject such as Finance, Business, Law, or International Development. 

Experience: The Consultant should have at least 10 years of experience working in a multinational team environment; such as development projects, university, or consultancy (management or development). Previous experience in running training, mentoring, or coaching in related a field would be an advantage. The Consultant shall have authored peer-reviewed English language articles, and published in international journals. 

Language Skills: The consultant must be a fluent English speaker.

Other Skills:

• Excellent interpersonal skills with the ability to mentor effectively and collaboratively in the workplace.
• The Consultant shall exhibit the highest standards of professional behaviour and personal integrity. The ability to work unsupervised is essential.

F. SUPERVISION AND REPORTING 

The Consultant will report directly to the Director of the International Cooperation Department. A contract implementation plan shall be prepared by the Consultant within three working days of commencement of the consultancy service. 

G. CONTRACT DURATION 

The Consultant is expected to commence work in May 2022. The consultancy duration is 20 working days. The consultant is expected to work off-site during the consultancy period.

Payments will be released upon satisfactory completion of all deliverables according to the following schedule: 

• Deliverables 1-5: 50% of total contract amount;  
• Deliverables 6-10: 50% of total contract amount.   

H. INSTITUTIONAL ARRANGEMENTS 

The FRC will provide office space when it is necessary and assign a coordinating consultant to work with the Consultant. The Consultant will have access all necessary data and information which the FRC can provide. 

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