The legal framework for the Cooperation Council was first established in 2006 under the AML/CFT Law. According to Article 22.1 of the AML/CFT Law, the Cooperation Council is responsible for ensuring the implementation of laws related to combating money laundering and terrorism financing, information exchange, risk mitigation and prevention. In this context, the structure and procedure of the Cooperation Council were approved by Decree No. 160 of the Governor of the Bank of Mongolia on April 5, 2007. Since then, the procedures and structure of the council have been revised, in 2014, 2017, and 2019, respectively.
Structure of the Cooperation Council
According to Article 22.2 of the AML/CFT Law, the structure of the Cooperation Council is as follows:
Functions of the Cooperation Council
According to Article 22.3 of the AML/CFT Law, the Financial Information Unit acts as the Secretariat of the Cooperation Council. The Cooperation Council has the following functions:
- To develop proposals and issue recommendations on the implementation of the AML/CFT Law, mitigation of risks and prevention of offences;
- To organize and coordinate activities associated with the research on risks of ML/TF of Mongolia, the national risk assessment and the evaluation of its results on a regular basis;
- To make recommendations on intensifying and effectively organizing the AML/CFT measures based on the results of the national risk assessment;
- To exchange information regarding the implementation of AML/CFT legislation and prevention measures to combat ML/TF and their effectiveness;
- To review legislative compliance by the competent authorities responsible for implementing AML/CFT legislation and make recommendations for improvement;
- To monitor compliance with AML/CFT legislation and accompanying rules, regulations, programs, action plans, and Cooperation Council recommendations by competent authorities and officials, review implementation progress, and enforce compliance if necessary; to take necessary actions such as discussing the compliance at the Cooperation Council, giving timely assignments, and ensuring operational coordination etc.
- To introduce proposals to align AML/CFT legislation in conformance with international standards and the FATF 40 Recommendations;
- To support competent authorities in establishing cooperation and coordination at national, regional, and international levels on AML/CFT;
- To organize and support trainings for the public, private sectors, and government authorities on the prevention of money laundering, financing of terrorism, and proliferation of weapons of mass destruction;
- Тo receive and review statements and complaints on AML/CFT;
- To make proposals on the structure, organization, budget, and operating expenses of FIUMongolia, to present, and resolve them;
- To get acquainted with the activities implemented by Working Groups under the Cooperation Council, and to coordinate the implementation of their recommendations;
- To monitor the implementation of the recommendations issued by the Cooperation Council.