Money Laundering in Mongolia: A Success Story
Mongolia’s fight against corruption and money laundering has been gaining momentum, with the country working closely with international partners to develop policies that combat this scourge.
The Global Impact of Corruption
Every year, an estimated $2.6 trillion is lost globally due to corruption, which undermines the rule of law, impedes economic development, and diverts resources from essential services. Developing countries in Asia are at the forefront of the battle against corruption, and one strategy is to join international agreements and adopt standards that help curb money laundering and terror financing.
Mongolia’s Success Story
In October 2019, Mongolia was placed on the “grey list” by the Financial Action Task Force (FATF), a global watchdog group, due to strategic deficiencies in its anti-money laundering and terrorist financing regimes. However, within 12 months, Mongolia managed to address these issues and get off the grey list, an unprecedented achievement for a developing country amidst a pandemic.
Combating Money Laundering and Terror Financing
Combating money laundering and terror financing is complex and requires international expertise across various government and private sector activities. Mongolia leveraged its network of experts to develop an effective strategy, working with development partners who have expertise in this area.
Key Factors for Success
- Bringing together private sector professionals from various sectors to cooperate with training and adhere to new reporting requirements
- Demonstrating a focus on cooperation, political will, and adaptability
- Concentrating on changes needed for maximum results at the fastest possible time
Lessons Learned
Mongolia’s experience provides important lessons for other countries facing similar issues with money laundering and terror financing. Participation in international agreements is crucial, but lasting change can only happen when reforms benefit a country’s citizenry.
The Importance of Communication
It is essential to communicate these benefits to the public, as people are more likely to support reforms when they understand them. Development partners have sent a clear message to developing countries: “You can rely on us. We have your back.”
Conclusion
Mongolia’s success in combating money laundering and terror financing serves as an example for other countries to follow. By working together with international partners, leveraging expertise from various sectors, and communicating the benefits of reforms, countries can achieve lasting change and improve public lives.