Mongolia Becomes First Country in Asia for Complete Implementation of FATF RecommendationsEconomy
Ulaanbaatar, September 28, 2023 /MONTSAME/. The Financial Action Task Force (FATF) announced that Mongolia has fully complied with a total of 40 recommendations issued by the organization. As per this result, Mongolia is the first country in Asia.
In 2017 FATF reviewed the activities related to money laundering, combating terrorism, and illegal financing in our country. As a result, 15 of the 40 recommendations were insufficiently implemented, and Mongolia was included in the gray list of countries with strategic deficiencies.
In 2020, the country was removed from the above list by fulfilling six tasks that were underperformed. Now, Mongolia annually submits its report to FATF's branch organization in Asia and the Pacific Region. The last report was defended at the regional meeting in Canada in July this year. As a result, our report has been approved and published internationally. Now, Mongolia has improved the assessment of all 40 FATF recommendations and has become a country that has fully implemented them, says the Head of the Financial Information Service of the Bank of Mongolia B. Batbaatar.
Mongolia needed to improve the 8th rating of 40 recommendations, i.e., Mongolia had fulfilled 39 out of 40 recommendations of FATF. Monitoring the activities of non-profit organizations (NGOs) in relation to combating money laundering and terrorist financing was missing. In this regard, a working group headed by the Minister of Justice and Internal Affairs was established to improve the above activities.
Now, Mongolia pledges to establish an integrated risk database, a Compliance Council, a fintech association, and a digital platform within the framework of improving operations related to money laundering and combating terrorism.
Our country has also approved and implemented the Law on Virtual Asset Service Provider. Thus, we have become the first country in Asia to implement virtual regulation. It is officially announced that the rating of Mongolia has improved by doing these works. Constructive changes are expected in the monetary and financial sector of our country, which will positively impact the reputation of Mongolia.
Activities to combat money laundering and terrorist financing are based on cooperation. Mongolia has established two councils in this area, National and Cooperation Councils, to support FATF's activities in combating money laundering and terrorism. About 20 government organizations are engaged in this work.