MONGOLIA LEADS THE FIGHT AGAINST FINANCIAL CRIME

In a major victory for global efforts to combat money laundering and terror financing, Mongolia has successfully removed itself from the “grey list” of high-risk countries just 12 months after being placed on it by the Financial Action Task Force (FATF).

The Impact of Corruption

Every year, an estimated $2.6 trillion is lost to corruption worldwide, undermining the rule of law, impeding economic development, and diverting scarce resources from essential services.

Mongolia’s Success Story

Mongolia’s swift action demonstrates the effectiveness of proactive measures in addressing corruption and financial crime. The country worked closely with development partners and donor nations to craft a plan that addressed its anti-money laundering (AML) and combating the financing of terrorism (CFT) deficiencies. This collaborative approach was crucial in ensuring that Mongolia had access to international expertise and resources.

The Role of International Cooperation

Collaboration with Development Partners

Mongolia’s leaders demonstrated a commitment to cooperation, political will, and a willingness to adapt and learn new procedures. This leadership allowed the country’s government agencies to concentrate on the changes needed for maximum results at the fastest possible time by efficiently utilizing resources.

Lessons from Mongolia’s Experience

• Participation in international agreements and covenants is crucial.
• Lasting change can only happen when reforms benefit a country’s citizenry.
• Anti-money laundering efforts should not be seen as arbitrary new bureaucratic procedures being imposed from outside the country.

Benefits of Anti-Money Laundering Reforms

Anti-money laundering efforts not only decrease corruption but also increase transparency in extractive industries such as mining, strengthen the rule of law, improve the operation of government, and improve the lives of citizens in myriad other ways. It is essential to communicate these benefits to the public because people are more likely to support reforms when they understand them.

Conclusion

Mongolia’s experience demonstrates that development partners can provide critical expertise and support to developing countries. The country’s success shows that with international cooperation and a commitment to reform, even high-risk countries can make significant progress in addressing money laundering and terror financing.