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Mongolia Makes Significant Progress in Combating Money Laundering and Terrorist Financing, Drops in FATF Gray List Ranking
Ulaanbaatar, November 29, 2023 - Mongolia’s efforts to combat money laundering and terrorist financing have paid off, as it has been recognized by international organizations for its significant progress in this area.
Progress in Combating Money Laundering and Terrorist Financing
According to the Basel Institute on Governance’s assessment in 2023, Mongolia’s money laundering and terrorist financing risk score has decreased, ranking 83rd out of 152 countries. The country was previously ranked 20th in the Basel AML Index, but its recent efforts have led to a significant improvement.
Leadership in Anti-Money Laundering Groups
Mongolia is now leading among anti-money laundering groups in the Asia-Pacific region, with a compliance rating of “compliant” and “largely compliant” on all 40 FATF technical recommendations. The Bank of Mongolia attributes this progress to the support from the State Great Khural and the Cabinet, as well as the prompt actions taken by public and private organizations.
Key Factors Contributing to Progress
- Implementing and detecting crimes related to money laundering and terrorist financing
- Expanding cooperation between public and private organizations
- Strengthening the capacity of human resources and funding for organizations operating in this area
The Basel AML Index
The Basel AML Index calculates risk using a special methodology, with a global average estimated at 5.31. Mongolia’s ranking is a testament to its commitment to combating money laundering and terrorist financing.
Positive Implications
Mongolia’s progress in this area has positive implications for other assessments and indexes that evaluate the country’s system of combating money laundering and terrorist financing. The country is also expected to benefit from enhanced cooperation with foreign banking and financial institutions.
About the Basel Institute on Governance
The Basel Institute on Governance, an independent not-for-profit organization dedicated to countering corruption and improving governance standards, annually assesses risks of money laundering and terrorist financing around the world. Its Basel AML Index has been published since 2012, providing risk scores based on five domains considered to contribute to a high risk of ML/TF:
- Quality of AML/CFT framework
- Bribery and corruption
- Financial transparency and standards
- Public transparency and accountability
- Legal and political risks