Central bank and Financial regulatory commission blamed for fail in duties
EconomyUlaanbaatar /MONTSAME/. Last week, Financial Action Task Force (FATF), intergovernmental organization on combating money laundering and tourist financing worldwide, identified Mongolia as a jurisdiction with Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) deficiencies for which they have developed an action plan with the FATF, or included Mongolia in so-called ‘Grey List’.
Concerning the FATF review, Parliament Speaker G.Zandanshatar met with Financial Regulatory Commission (FRC) Chairman S.Davaasuren to notify that corresponding officials of the FRC and Bank of Mongolia should be held responsible. “Shortfalls of Mongolia’s commitment on AML/CFT are connected with some organizations and individuals’ failure to comply with relevant rules and fulfill their responsibilities attached to the posts” said Parliament Speaker.
“In spite of some progress in the implementation of the recommendations provided by the FATF as well as stabilization of country’s economy and recovery of financial environment, no satisfactory results have been shown in creation of reliable trustworthy environment as the FRC have failed to execute its duties to maintain stable market economy and take control on law enforcement” he added.
According to Parliament Speaker, there’s no doubt that Mongolia is not seriously threatened by money laundering and terrorism financing and the deficiencies stated by the FATF hinged on some factors, including country’s implementation of its economic transparency law and increase of the shared capital of non-bank financial institutions.