AML/CFT regime broadens its scope to non-financial business consultants

Mongolia • Issue 02/2020 •  March 2020

On 17 January 2020, the Parliament approved amendments to the Law of Mongolia on Combating Money Laundering and Financing of Terrorism

On 17 January 2020, the Law of Mongolia on Combating Money Laundering and Financing of Terrorism (the “AML Law”) was amended to clarify the scope and roles of Designated Non-Financial Businesses and Professions in an effort to adequately comply with the Financial Action Task Force (the “FATF”) recommendations as Mongolia had recently been grey listed due to “strategic deficiencies” in anti-money laundering and combating the financing of terrorism (the “AML/CFT”) policies.  

The amendment became effective immediately upon approval from 17 January 2020. 

We highlight the key changes and implications as below: 

1. Non-financial businesses and professions such as lawyers,  accountants, tax consultants and external auditors are now obligated to disclose the extensive client information for the review of Financial Intelligence Unit (the “FIU”), as they are considered as reporting entities (the “RE”), if they have prepared, completed or participated in the following transactions exceeding MNT 2o million (or foreign currency equivalent) in relation to their clients: 

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Contact us

Tsendmaa Choijamts

Director, Tax and Legal services, PwC Mongolia

Tel: +976 70009089

Maryna Tarnavska

Senior Manager, Tax and Legal services, PwC Mongolia

Tel: +976 70009089

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