Focus on NPO abuse admits Mongolia to elite club of countries compliant or partially compliant with all FATF recommendations

Mongolia has passed all 40 recommendations set by the Financial Action Task Force (FATF), making the country the first in the Asia Pacific region, and the fifth country in the world to achieve this level of compliance, according to minister of justice and home affairs, Tsendiin Nyambaatar.

Previously, Mongolia was compliant or largely compliant with 39 of the FATF recommendations, but only partially compliant with recommendation 8, which deals with the potential for non-profit organisations (NPOs) to be abused for the financing of terrorism.

The FATF is currently considering proposals for the update of its best practice paper and its guidance on combatting the abuse of NPOs, and is seeking comments on this work.

 Government statement

According to a Mongolian government statement, a team led deputy minister of justice and internal affairs, Solongoo Bayarsaikhan, presented a progress report to a group convened at the 26th annual meeting of the Asia-Pacific Anti-Money Laundering Group in Vancouver, Canada last month.

The group discussed and approved Mongolia’s report related to the technical implementation of recommendation 8 on the potential for NPOs to be abused for the financing of terrorism the statement says.

FATF consultation on NPOs

The FATF proposals to update its best practice paper to combat the abuse of NPOs is being undertaken in parallel to the proposed amendments to recommendation 8 and its interpretive note to better clarify the implementation of a risk-based approach.

As part of this work, the task force is consulting all interested stakeholders, including practitioners, experts and stakeholders from the NPO sector and financial institutions. Responses should be submitted by 18th August.

Financial institutions

The FATF is particularly interested in comments on financial institutions’ initiatives to ensure access of legitimate NPOs to financial services, including risk-based mitigating measures.

It is also seeking comments on mitigating terrorism financing risk at an NPO individual level and implementing good governance at an NPO individual level to meet recommendation 8 objectives.

The Mongolian government statement, Mongolia becomes 1st country in Asia Pacific to comply with all recommendations by the Financial Action Task Force, can be found here.

More information on The FATF Public Consultation on the FATF Best Practice Paper to Combat the Abuse of Non Profit Organisations can be found here.

 

 



Categories: Trade Based Financial crimes News

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