Title: Mongolia Fighting Financial Crime: National Risk Assessment Reveals Money Laundering and Terrorism Financing Threats

Introduction

Mongolia, a landlocked country in Central Asia, is growingly vulnerable to money laundering (ML) and terrorism financing (TF) threats. A national risk assessment report has identified key vulnerabilities and outlined measures to mitigate these risks.

Assessment Methodology

• Prepared by: The Bank of Mongolia in collaboration with various government agencies and international organizations
• Data collection: Using standardized forms

Key Findings

• Crime types: Theft and fraud are most prevalent
• Underreported crimes: Corruption, environmental offenses, and tax evasion
• Most significant ML crimes: Fraud, theft, drug trafficking, and smuggling

Sectoral Vulnerabilities

1. Banking sector: Most vulnerable due to its size and lack of transparency
2. Real estate sector: Lack of transparency puts it at the second most vulnerable position

External Threats

1. Strategic location: Mongolia’s location poses a high risk due to economic relationships with neighboring countries (China, Russia, and South Korea)
2. Foreign citizens: Increasing number opens opportunities for criminals to launder illegal funds

Countermeasures

• Strengthening the legal and institutional framework
• Increasing law enforcement expertise
• Centralized control and supervision of non-banking financial institutions and professionals
• Enhancing cross-border cooperation and mutual legal assistance

Conclusion

This national risk assessment report marks the beginning of Mongolia’s fight against ML and TF. Ongoing vigilance, effective law enforcement, and international cooperation are essential to facing the evolving threats in Mongolia’s financial sector.