Financial Crime World

Mongolia Makes Strides in Financial Crime Investigation with International Support

The Independent Authority Against Corruption (IAAC) of Mongolia has made significant progress in investigating financial crimes, thanks to a 12-year collaboration with the Stolen Asset Recovery (StAR) initiative.

Capacity Building and Policy Support

The partnership between IAAC and StAR has provided capacity building training and policy and legal support to help IAAC tackle corruption, money laundering, and other financial offenses. The success of IAAC can be attributed to the commitment and capacity building support from StAR, which has received funding from Korea and the United States.

Notable Achievements

  • Successful return of $1.1 million in stolen assets to Mongolia from the United Kingdom through a combination of international informal cooperation and formal mutual legal assistance.
  • Active participation in regional networks and groups, leveraging these connections to advance case work and facilitate bilateral engagement with requested countries.

Challenges and Opportunities during the COVID-19 Pandemic

The pandemic has presented challenges, but it has also provided an opportunity for StAR to deliver technical assistance and capacity building virtually to a wider audience. Some notable virtual training initiatives include:

  • Practical financial investigations workshop attended by over 150 participants from six organizations
  • Topic-specific webinars on subjects such as virtual assets and civil recovery, attended by over 350 prosecutors and detectives

Improving Domestic Coordination Mechanisms

StAR has facilitated the improvement of Mongolia’s domestic coordination mechanisms by introducing a Case Management System (CMS). The CMS has enhanced internal coordination and cooperation between investigators and prosecutors. The evidence matrix within the CMS has proved particularly useful for prosecutors in complicated cases involving multiple offenses, such as corruption, procurement fraud, tax evasion, and money laundering.

Strengthening International Cooperation

StAR began working with the University of Internal Affairs to provide technical assistance related to fighting corruption. The initiative also supported improvements to Mongolia’s regime and mechanism for provision and transmission of mutual legal assistance in criminal matters, focusing on the recovery of stolen assets internationally.

Key Developments

  • Finalized and approved MLA guidance chapter by the Prosecutor General of Mongolia in 2015
  • Became an independent guidance in 2019
  • Approved by the Council Meeting headed by the Prosecutor General of Mongolia in May 2021 (Decree No. A/65)

Looking Ahead

Building capacity and achieving results requires a long-term commitment and investment in personnel over the long term. StAR’s capacity building efforts in Mongolia will continue to focus on:

  • Partnering with academia to train new minds
  • Delivering focused events on emerging threats and new methods
  • Strengthening processes associated with asset management