New requirements are imposed on legal and business consultants under amendments to the Law on Combating Money Laundering and Terrorism Financing

Issue 4/2018 •  18 June 2018

The Parliament of Mongolia amended the Law on Combating Money Laundering and Terrorism Financing (Law on AML/TF) on 26 April 2018. Under these amendments, legal and business consulting service providers are obliged to undertake a client identification procedure and to report transactions exceeding a certain threshold to the Financial Intelligence Unit of Bank of Mongolia.

Generally, banking and financial institutions are required to report on transactions above MNT 20 million to the Financial Intelligence Unit within 5 days after occurrence of such transactions.

However, the recent amendments broadened the scope of the reporting entities, where legal and/or business consultancy service providers which undertake the following transactions on its client’s behalf (with a certain threshold) are also included.