National Risk Assessment

The purpose of the National Risk Assessment is to mitigate ML/TF risks by understanding the risks, effectively allocating the limited resources available to law enforcement, regulatory and prevention agencies, and taking appropriate measures. For this reason, the National Risk Assessment Report is prepared to develop risk-based approaches and action plans. Understanding the scale and impact of ML/TF risks will assist governments, regulatory, oversight and supervisory authorities to combat this crime by prioritizing and efficiently allocating resources to high risk sectors and geographies. Countries are required to conduct National Risk Assessments in accordance with the FATF International AML/CFT Standards. Mongolia has expressed its full commitment to implement this standard through its membership in the APG, the FATF style regional organization.

The National Risk Assessment is organized by the FIU. Mongolia's first National Risk Assessment was conducted in 2016 and assessed the risk of ML/TF crime, risks in the banking sector, the non-bank financial sector, and the DNFBP sector.

The second National Risk Assessment is currently in progress and will be finalized in 2020. The Minister of Finance approved the composition of the working group to conduct and report on the National ML/TF Risk Assessment as an appendix to the decree No.20 dated January 31, 2020. In this context, the following sub-working groups were established in accordance with the appendix to the decree No. 90 of the Minister of Finance dated April 27, 2020. These include:

  • ML threat assessment sub-working group
  • National vulnerability sub-working group
  • Banking sector vulnerability sub-working group
  • Securities sector vulnerability sub-working group
  • Insurance sector vulnerability sub-working group
  • Other financial institutions vulnerability sub-working group
  • DNFBP vulnerability sub-working group
  • TF risk assessment sub-working group
  • Financial inclusion product risk assessment sub-working group
  • Non-profit organizations vulnerability sub-working group

Figure. Structure of National Risk Assessment

Click here to Mongolia National Risk Assessment of Money Laundering and Financing of Terrorism.