Mongolia’s Organized Crime Threat: From Cyber Crimes to Drug Trafficking

Ulaanbaatar, Mongolia - As the world grapples with the rise of organized crime, Mongolia is facing its own unique challenges. The country’s proximity to Russia and China, both known for their large drug markets, increases the risk of drug trafficking into and through Mongolia.

Cyber Crimes on the Rise

Mongolia has experienced a surge in cyber-attacks over the past decade, including a major security breach at one of the country’s largest certificate authorities. Russian and Chinese hacking groups have been actively involved in these attacks, exploiting Mongolia’s developing technological infrastructure to further their criminal activities.

Types of Cyber Attacks: Mongolia has seen an increase in various types of cyber attacks, including phishing, malware, and denial-of-service (DoS) attacks.
Impact on Economy: These attacks have had a significant impact on the country’s economy, causing financial losses and disrupting critical infrastructure.

Financial Crimes Emerging

While financial crimes do not appear to be a common criminal market for organized crime groups in Mongolia, reports of pyramid schemes and cyber-enabled frauds have emerged recently. Corruption related to government loan programs and development bank operations has also been a significant issue, with loans distributed to ineligible individuals who later refused to return them.

Pyramid Schemes: Several pyramid schemes have been reported in Mongolia, targeting vulnerable citizens and causing significant financial losses.
Corruption: Corruption is a major challenge for Mongolia’s financial system, with state actors often supporting illegal activities carried out in the country.

Criminal Actors and Networks

Corruption is a major challenge for Mongolia, with state actors often supporting illegal activities carried out in the country. Local and national politicians have been found to be involved in illicit practices, including illegal mining. Judges and police officials have also been accused of corruption, making it difficult to combat organized crime effectively.

State Actors: Corruption among state actors has compromised the effectiveness of law enforcement efforts against organized crime.
Local Politicians: Local and national politicians have been implicated in illegal activities, including illegal mining.

Economic and Financial Environment

Mongolia’s economic regulatory environment presents challenges for businesses due to corruption in the judiciary and land administration, as well as political interference in property rights. The country is considered a medium- to high-risk country for money laundering by several organizations and measurement tools.

Corruption: Corruption in the judiciary and land administration has hindered business growth and created an environment conducive to money laundering.
Political Interference: Political interference in property rights has led to disputes and instability in the economy.

Victim support facilities in Mongolia are inadequate, with limited psychosocial care available. A culture of victim-blaming persists, making it difficult for victims to seek help. The government has made efforts to protect whistle-blowers from harassment and prevent them from becoming victims of crime or revenge.

Inadequate Support: Victim support facilities in Mongolia are inadequate, leaving many victims without access to necessary care.
Victim-Blaming Culture: A culture of victim-blaming persists, making it difficult for victims to seek help.

Political and Economic Environment

Mongolia is considered a free country, with civil society organizations playing a vital role in various fields. However, media ownership is highly concentrated, and media are often affiliated with political parties, limiting their ability to act as watchdogs. Journalists have been subject to threats and pressure that undermine media independence.

Free Country: Mongolia is considered a free country, with a thriving civil society.
Concentrated Media Ownership: Media ownership is highly concentrated, limiting the diversity of voices and opinions.

As Mongolia continues to grapple with organized crime, it is clear that the country’s unique circumstances require a tailored approach to combating these threats. With the help of international organizations and foreign NGOs, Mongolia can work towards building a stronger, more resilient society.