Mongolia Makes Strides in Eradicating Financial Crime with Risk Assessment Progress
Ulaanbaatar, Mongolia - November 29, 2023
After being placed on the Financial Action Task Force’s (FATF) gray list in October 2019 and ranking 20th in the Basel AML Index, Mongolia has made significant progress in combating money laundering and terrorist financing. According to a recent assessment by the Basel Institute on Governance, Mongolia’s risk score has decreased, placing it 83rd out of 152 countries.
Commitment to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Framework
Mongolia’s progress is attributed to its commitment to AML/CFT framework. The country has demonstrated unprecedented progress in combating financial crime, earning a ranking as “compliant” and “largely compliant” on all 40 FATF technical recommendations.
International Recognition
Mongolia’s efforts have also received recognition from international organizations. The Basel AML Index cites the country’s ability to detect and prevent crimes related to money laundering and terrorist financing. The index assesses risks using a special methodology, with Haiti ranking as the country with the highest risk of money laundering and terrorist financing, while Iceland is ranked lowest.
Bank of Mongolia Emphasizes Continued Focus
The Bank of Mongolia emphasized the importance of continued focus on implementing effective measures to combat financial crime, expanding cooperation between government agencies, public and private organizations, and strengthening human resources and funding for anti-money laundering efforts.
Basel AML Index Methodology
The Basel Institute on Governance, a non-profit organization dedicated to countering corruption and improving governance standards, publishes the Basel AML Index annually. The index uses data from 18 publicly available sources, including the FATF, Transparency International, and the World Economic Forum, to assess risks in five key domains:
- Quality of AML/CFT framework
- Bribery and corruption
- Financial transparency and standards
- Public transparency and accountability
- Legal and political risks
Impact on Reputation and Relationships
The progress made by Mongolia is expected to have a positive impact on its reputation and relationships with foreign banking and financial institutions. The country’s commitment to combating financial crime will likely continue to improve its ranking in future assessments and indexes, solidifying its position as a leader in the Asia-Pacific region in anti-money laundering efforts.
Conclusion
Mongolia’s significant progress in combating financial crime demonstrates its commitment to eradicating financial crime and improving its reputation internationally. The country’s continued focus on implementing effective measures will likely lead to further improvements in its ranking and solidify its position as a leader in the Asia-Pacific region.