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 iыnternational.
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.
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.
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 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 fact that the Bank's compliance policy is discussed and approved by the Board of Directors manifests how attentive the top management of the Bank is towards the compliance activity.
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.
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.
Tips to prevent from becoming a victim of crime:
Information security is the practical act of protecting information by reducing information loss risk. Information security includes preventing unauthorized access, use, disclosure, interruption, destruction or alteration of data. Protected information can be in tangible or intangible forms. The main focus of information security is to balance the confidentiality, integrity and accessibility of information.
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.
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.
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.