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Mongolia was removed from European Union's list on high-risk third countries.

Date: 2021/01/19

On January 18, 2021, the official journal of the European Union published a resolution removing Mongolia from European Union’s list on high-risk third countries with strategic deficiencies which is also called “Black list”. This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

In October 2019, the FATF identified Mongolia as a jurisdiction having strategic AML/CFT deficiencies for which Mongolia had developed an action plan with the FATF. On this basis and in accordance with the latest relevant information, the Commission’s assessment in May 2020 concluded that Mongolia should be considered as a third-country jurisdiction which had strategic deficiencies in its AML/CFT regime.

Public sector, private sector and professional associations have collaborated to remove Mongolia from the FATF's gray list and has strengthened the effectiveness of its AML/CFT regime and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2019.

The FATF announced that Mongolia is therefore no longer subject to the FATF’s increased monitoring process on October 23, 2020. As a result, Mongolia was able to get off the “Grey list” in less than a year, compared to other countries.

Therefore, the European Commission assessed the shortcomings of Mongolia's strategic deficiencies in their regimes on anti-money laundering and countering terrorist financing in accordance with the requirements of EU Resolution No. 2015/849 and made the following conclusions. These include:

"Based on the relevant information, the European Commission has assessed that Mongolia has eliminated its strategic deficiencies in the anti-money laundering and terrorist financing system. Mongolia has strengthened the effectiveness of its AML/CFT system and addressed related technical deficiencies to meet the commitments in its action plan regarding the strategic deficiencies which identified by FATF. These measures are sufficiently comprehensive and meet the necessary requirements to consider that strategic deficiencies identified under article 9 of the Directive (EU) 2015/849 have been addressed. ”

Removing Mongolia from the EU's list of high-risk third countries will increase opportunities to establish business relations with EU member states' banks and financial institutions, complete transactions in a short period of time, and implement EU-funded projects and programs.

Please read the resolution No. 2021/37 published in the official journal of the European Union on January 18, 2021 at the following link.

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.014.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A014%3ATOC