Financial Crime World

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Mongolia’s Risk-Based Approach to Anti-Money Laundering and Counter-Terrorist Financing Yields Positive Results

The Basel Institute on Governance has released its 2023 Basel AML Index, which assesses countries’ vulnerability to money laundering and terrorist financing. The report highlights Mongolia’s significant progress in combating these crimes.

Comprehensive Risk Assessment Tool

The Basel Anti-Money Laundering Index is a comprehensive risk assessment tool that evaluates a country’s anti-money laundering and counter-terrorism financing framework, prevalence of bribery and corruption, financial transparency, accountability, and legal and political risks. According to the report, Mongolia has made substantial strides in improving its AML/CFT system.

Improvement in ML/TF Risk Level

Mongolia’s overall ML/TF risk level decreased from 5.86 in 2022 to 5 in 2023, moving up 47 places in the ranking to 83rd globally. This improvement is largely attributed to the country’s “compliant or largely compliant” rating with all 40 FATF recommendations, making it the first Asian country and fifth globally to achieve this milestone.

Key Factors Contributing to Success

  • Alignment of domestic legal and regulatory frameworks with international agreements
  • Implementation of effective prevention measures
  • Public-Private Partnerships and Independent Authority Against Corruption efforts

International Efforts and Future Plans

Mongolia has been actively contributing to international efforts to combat these crimes, demonstrating its commitment to prevention and intervention. Looking ahead, Mongolia plans to: * Implement AML/CFT measures effectively * Conduct national risk assessments * Formulate regulations * Promote public awareness about the risks of money laundering and terrorist financing

National Strategy 2022-2030

The country’s AML/CT National Strategy 2022-2030 outlines eight strategic goals and 48 sub-objectives aimed at strengthening its AML/CFT framework.

Conclusion

Mongolia’s efforts to combat money laundering and terrorist financing have yielded positive results, highlighting the importance of a risk-based approach in addressing these global challenges.