Mongolia faces need to prevent potential greylisting www.zgm.mn
In 2017, FATF applied enhanced due diligence for Mongolia and gave 40 recommendations to implement in connection with Mongolia’s failure of meeting 11 targets of the direct implementation section. If the country fails to complete the tasks, it will drop into the grey list, increasing the possibility of falling into the blacklist.
Mongolia managed to get out of the Financial Action Task Force (FATF)’s grey list in 2014 after taking action to combat terror funding and money laundering. At the time, it had no direct impact on citizens and enterprises due to the simple international control and small economy of the country. If we get into the grey list, all foreign transactions and foreign investments will halt, lowering the credit rating.
However, the performance in the 11 targets can be improved over five years, according to the officials. It is crucial to prove that Mongolia’s AML/ CTF system will be solid through 2022 at least. 40 recommendation of FATF is a concern to the whole nation, including the government bodies on all levels.
Mongolia became a member of APG in 2004 and passed its Law on Combating Money Laundering and Terrorism Financing in July 2006. Since then, it has been intensifying actions to eliminate and prevent this type of crime.
Bank of Mongolia (BoM) is paying special attention to this issue, assigned a working group to present the report on AML/CTF measures. The working group will report the fulfillment of FATF’s recommendations before the APG annual meeting in late August in order to prevent greylisting.
Published Date:2019-08-15