Compliance risk refers to the risk that XacBank may be unable to successfully conduct its business operations due to failure to comply with laws, regulatory requirements, and the business and professional ethical standards applicable in the financial sector. This includes, in particular, regulations aimed at combating financial crimes such as money laundering and terrorist financing, as well as fraud, corruption, and bribery.

Compliance Management at XacBank

The Compliance Department of XacBank is responsible for leading and organizing preventive measures to protect the bank’s systems and its customers from exposure to money laundering and financial crimes. We firmly believe that promoting a culture of compliance across all levels of Mongolia’s banking sector is essential. This commitment is actively supported and implemented with the backing of our Board of Directors and Executive Management Team.

Compliance Governance

XacBank implements Mongolia's legislation, international agreements and conventions, as well as correspondent banking requirements, including:

• Banking Law of Mongolia
• Customer Protection Principles
• Mongolian Law on Prevention of Money Laundering and Counter Terrorist Financing
• Regulations adopted by Central Bank of Mongolia and Financial Regulation Committee
• FATF recommendations and international sanctions (UN, EU, OFAC)