Mongolia Sets Global Standard in Fight Against Financial Crimes: The First Asia-Pacific Nation to Fully Implement FATF Recommendations
Mongolia has achieved a significant milestone by becoming the first Asia-Pacific and fifth global nation to adopt and fully implement all 40 recommendations of the Financial Action Task Force (FATF), a global body dedicated to combating financial crime. This historic accomplishment demonstrates Mongolia’s unwavering commitment to eliminating terror financing, money laundering, and corruption.
Mongolia’s Achievement in the Global Context
The FATF, with 200 member countries and jurisdictions, is a global watchdog that monitors and evaluates countries and territories to reduce financial manipulation, organized crime, and the funding of terrorist activities. By implementing all FATF recommendations, Mongolia is setting an exemplary standard in the fight against financial crimes and contributing to regional and global security.
Advancements in Implementing FATF Recommendations
Recommendation 8: Tackling the Risk of Terror Financing through Non-Profit Organizations
One of Mongolia’s most notable advances is in implementing recommendation 8, which focuses on mitigating the risk of terrorist financing through non-profit organizations. Mongolia’s compliance status has improved from “partially compliant” to “largely compliant.” This achievement underscores Mongolia’s dedication to a responsible charitable sector and increased transparency within civil society.
Innovative Approach to FATF Recommendations
Mongolia’s strategy for implementing FATF recommendations includes involving civil society in policy creation. This approach maintains freedom of expression and liberties of non-profit organizations while fostering trust between authorities and the private sector.
Fighting Corruption
Significant Issue and the Nation’s Commitment
Corruption is a significant issue that often serves as a gateway for money laundering and other forms of authority abuse. Mongolia’s efforts to combat this issue include focusing on high-level corruption cases, increasing accountability and transparency in government procurement, and implementing improvements to laws against corruption.
Declaration of 2023 as “The Year of the Fight Against Corruption”
To address corruption at its roots, Mongolia has declared 2023 as “The Year of the Fight Against Corruption.” This comprehensive anti-corruption strategy aims to:
- Evaluate high-level corruption cases
- Foster accountability and transparency in government procurement
- Implement improvements to laws against corruption
Commendations and Recognition
At the Asia-Pacific Financial Crimes Group’s 26th annual conference held in Vancouver, Canada, Mongolia’s Deputy Minister of Justice and Domestic Affairs, B. Solongoo, presented a progress report on the nation’s advancements in compliance with FATF recommendations. The committee recognized Mongolia’s performance in implementing recommendation 8 regarding non-profit organizations.
Global Recognition and Praise
FATF, alongside its nine affiliate member organizations and international partners such as the IMF and the World Bank, assesses countries and territories. Mongolia’s full implementation of the FATF recommendations signifies a strong legal system and unwavering commitment to upholding these standards through increased regulation. Many nations have commended Mongolia for its achievements.
The Global Impact of FATF Compliance
The FATF’s 40 recommendations provide a comprehensive framework for addressing terror financing, money laundering, corruption, monetary manipulation, and the spread of weapons of mass destruction. This global benchmark strengthens the world’s defenses against these criminal behaviors, minimizing their destructive impact on society.