Corruption in Mongolia’s Finance Sector: A Country’s Fight Against Money Laundering and Terror Financing
Mongolia has made significant strides in combating corruption and money laundering, being removed from a global watchdog group’s “grey list” just 12 months after being placed on it. The success story highlights the importance of international cooperation, leadership, and a willingness to adapt in the fight against financial crimes.
The Impact of Corruption
Every year, an estimated $2.6 trillion is lost globally due to corruption, which undermines the rule of law and hampers economic development. In Asia, developing countries are at the forefront of this battle, with many adopting international standards to prevent money laundering and terror financing.
Key Statistics
- Estimated annual loss due to corruption: $2.6 trillion
- Countries most affected by corruption in Asia: Developing nations
Mongolia’s Success Story
Mongolia worked closely with development partners and donor nations to craft a plan that addressed anti-money laundering and combating the financing of terrorism (AML/CFT) initiatives. This proactive approach allowed Mongolia to quickly address its deficiencies, reducing the number of issues it had to tackle from 20 to just six.
Key Factors in Mongolia’s Success
- Leadership: Prioritizing cooperation and adaptation
- Collaboration: Bringing together experts from various sectors to train and adhere to new reporting requirements
- Effective resource utilization: Concentrating on making changes efficiently, utilizing resources effectively
Communicating the Benefits of Reforms
Mongolia’s experience highlights the importance of communicating the benefits of reforms to the public. By explaining how anti-money laundering efforts can decrease corruption, increase transparency in extractive industries, and strengthen the rule of law, countries can build support for these initiatives among citizens.
Key Messages
- Anti-money laundering efforts can decrease corruption
- Increase transparency in extractive industries
- Strengthen the rule of law
Support from Development Partners
Development partners have emphasized their commitment to supporting nations in their fight against financial crimes. “You can rely on us,” they say. “We have your back.”
Mongolia’s success story serves as a model for other countries seeking to tackle corruption and money laundering. By embracing international cooperation, leadership, and adaptation, developing countries can make significant progress in combating these societal scourges.