TDB is committed to the preservation of its reputation and integrity through compliance with applicable laws, regulations and ethical standards in each of the markets in which it operates.
All employees are expected to adhere to these laws, regulations and ethical standards, and management is responsible for ensuring such compliance. The Board of Directors of TDB has collective responsibility for supporting the management of the compliance risk across TDB and the general management of a business unit has collective responsibility for managing compliance risk within its business unit. Dedicated Compliance Specialists throughout TDB assist management in controlling compliance risk.
TDB has adopted the Compliance policy and procedure to help its businesses effectively manage their compliance risks. The policy and procedure were framed the ISO 37301:2021 (ISO 37301:2021(en), Compliance management systems — Requirements with guidance for use) standard and was approved by the Chairman of the Board. The policies and procedures distinctly define and reflect the roles and responsibilities of the Board of Directors, the Executive, departments, units, staff and compliance professionals in risk management.
The policies and procedures cover the details of the contribution, role, and responsibilities of the Board of Directors, Executive Management, departments, units, staff, and compliance specialists in managing compliance risk.
TDB implemented a Corporate Policy and Procedure on Anti-Money laundering and Counter-Terrorism financing to prevent its businesses from involvement in money-laundering and terrorist financing.
The policy and the procedure follow the national Law on Combating Money Laundering and Terrorist Financing and Proliferation of Weapons of Mass Destruction and Combating Terrorism, the Mongolbank’s Procedures to prevent money laundering and terrorist financing and regulations, Financial Action Task Force (FATF)’s recommendations and US and Eu standards. Click here
USA Patriot Act
The bank follows the USA PATRIOT ACT. The Act is devoted to deter and punish terrorist acts in the United States and across the globe to enhance related law enforcement investigatory tools and other purposes. Click here
The Wolfsberg Group is an association of thirteen global banks that aims to develop frameworks and guidance for managing financial crime risks, particularly concerning Know Your Customer, Anti-Money Laundering, and Counter-Terrorist Financing policies.
The attached document is the Wolfsberg Group's Correspondent Banking Due Diligence questionnaire, and in the paper, you can find the general frame of the Bank's AML and CTF program. Click here
Banks and financial institutions comply with the FATCA. This law instructs banks and financial institutions to provide information on foreign accounts of US citizens and legal entities to the Federal Tax Administration, and the TDB is a reporting Foreign Financial Institution per the act and operates accordingly. Click here
The Bank is keen on running safe, secure, and compliant financial operations that have always been the bank's top priority The Bank believes that by performing effective customer due diligence and transaction monitoring, we are preventing and decreasing the risk of the financial system being misused in criminal activities, including money laundering and terrorist financing. Furthermore, we consider this our best contribution to reducing and preventing the customers and society from the possibility of money laundering and terrorist financing risks.
The movement of illicit proceeds threatens the stability of the country's financial market and can affect the accuracy of the financial reporting, all aspects of the country's reputation, and its ability to stand international.
As money laundering and terrorist financing are global issues, legalizing the actions is not sufficient to combat the above criminals. It is necessary to take measures to prevent the financial system from being exposed to money laundering and terrorist financing activities.
Stopping Financial crimes is not something one bank can do alone. It’s a challenge for our entire industry. That’s why we work with other banks, law enforcement and public and private parties to identify and combat threats. Effectiveness is improved by shared intelligence, collaboration and third-party partnerships.
What kind of information you need to provide to Bank?
Know your customer (KYC) is the first step towards a safe and compliant bank. It ensures we only do business with people and companies we have verified as being trustworthy.
This includes transaction monitoring and, besides carrying out sanction screening, customer due diligence checks, updating customer files, and collecting supporting documents from the customer related to their transaction and activity.
On the one hand, the Bank must quickly transfer the Customer's foreign transactions, deliver its services to customers following international standards, and on the other hand, cooperate with foreign banking and financial institutions, comply with the laws of the country of the foreign Bank's location, combat domestic money laundering and financing of terrorism (AML/CFT) and the Customer. They are obliged to follow the policy of recognition.
International banks and their regulatory bodies have strict controls and high demands. Banking activities significantly impact not only banks and customers but also foreign relations, the economy, international trade, cooperation, and investment. Therefore, we hope the customer will understand and cooperate that the bank sets specific requirements for customers and customer transactions to fulfil its obligations to customers and cooperative banks.
Why does the bank monitor customer transactions and require transaction-related information?
Since the bank that transmits the transactions of our bank and the recipient bank does not have information about either of the customers on both sides, the transmitting banks require the purpose of the payment to be written, the information of the transferor and the recipient to be complete, and if the information is incorrect, incomplete or unclear, the payment In order to clarify the meaning and obtain information about the transferor and the recipient, measures are taken to delay, reverse, and even isolate and confiscate the transaction.
Control of foreign transactions:
The foreign transaction that the customer transfers is carried out through the international settlement system under the supervision of multiple "Transferring Banks". Each transmitting bank has its anti-trafficking program and implements controls following that program. Also, the bank transmitting the transaction requires our bank to include the information of the transferor, recipient and other necessary information in the transaction being sent, according to the 15th recommendation of FAFT. The "Transmitting Bank" can refuse to transfer the transaction if this requirement is unmet. Therefore, to fulfil the contract terms with the correspondent bank and to support the conditions for the smooth transmission of the customer's payments, the bank performs specific controls on foreign transactions.
Financial crime mitigation?
A financial crime is a crime explicitly committed against property. The criminals principally commit financial crimes for their private interest, involving the illegal transfer of property ownership. Financial crimes can occur in many forms. The most common financial crimes in the financial sector are money laundering, terrorist financing, violation of international sanctions, corruption, fraud, embezzlement, forgery, and theft.
What is money laundering?
Money laundering is the process of cloaking the property right, owner, application approach, source, and location of illegal money generated by criminal activity and taking, owning, and using it by knowing its illegitimateness. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.
What is terrorism financing?
Terrorist financing is accumulating, changing, transferring and allocating funds for terrorists, terrorist acts and activities directly or indirectly.
What is the financing of the proliferation of weapons of mass destruction?
The proliferation of weapons of mass destruction has increasingly become part of the fight against money laundering and terrorist financing, and combating these crimes has become one of the essential responsibilities of whistleblowers.
This is the financing of any activity to manufacture, use, sell, or purchase nuclear, chemical, or biological weapons of mass destruction that are prohibited by Mongolian laws and international treaties. The proliferation of weapons of mass destruction brings grave consequences for international safety, security, and environmental well-being. Therefore, it is extremely important for the Bank to identify and stop any financial transaction that is likely to be involved in the financing of the proliferation of weapons of mass destruction.
Tips to avoid becoming a victim of crime:
Tips on how to ensure information security:
Tips for making foreign transfers:
As a customer, you can reduce the risk of transaction delays, cancellations, and reversals by paying attention to the following points when transferring transactions. It includes:
Risk recommendations for not updating contact information:
Dear customer, the main goal of information innovation is to continuously and quickly deliver banking services suitable for and to prevent and protect potential risks. The following risks and problems arise since the customer still needs to update the information, and it is outdated. It includes:
Tips for preventing cybercrime:
Globally, with the rapid development of new technology and the increase in the scope of its use, fraud, illegal activities, and criminal acts in the online environment have become more common.