According to the FATF, Mongolia made a high-level political commitment to work with the FATF and its Asia/Pacific Group on Money Laundering (APG) to strengthen the effectiveness of its AML/CFT regime and will now work to implement its action plan, including (1) improving sectoral ML/TF risk understanding by Designated Non-Financial Businesses and Professions (DNFBP) supervisors, (2) demonstrating increased investigations and prosecutions of different types of ML activity in line with identified risks; (3) demonstrating further seizure and confiscation of falsely/non-declared currency and applying effective, proportionate and dissuasive sanctions; (4) demonstrating cooperation and coordination between authorities to prevent sanctions evasion.

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.