Corruption in Mongolia’s Finance Sector Remains a Concern

Economic Challenges and Corruption in the Finance Sector

Ulaanbaatar, MONGOLIA - As the government of Mongolia continues to grapple with economic challenges, experts are sounding the alarm on corruption in the finance sector. A recent report has highlighted the need for stronger anti-corruption measures and improved governance across various state functions.

Progress Made but Room for Improvement

Mongolia has made significant strides in addressing corruption, but more needs to be done to tackle remaining gaps and ensure effective enforcement. The country’s ranking on the Worldwide Governance Indicators places it above its Asian peers but below regional averages, indicating room for improvement.

Vulnerabilities in the Finance Sector

• Weak Revenue Administration: Undermining fiscal sustainability
• Uneven Enforcement of Tax Rules: Damaging the investment climate
• Poor Governance in State-Owned Enterprises (SOEs): Creating fiscal liabilities and hindering effectiveness

Recommendations for Addressing Corruption in Mongolia’s Finance Sector

• Strengthen Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations
• Improve Tax Administration and Enforcement
• Enhance Transparency and Accountability in State-Owned Enterprises
• Increase Public Awareness and Engagement on Corruption Issues

Implementation Requires Sustained Effort and Commitment

Implementation of these measures will require sustained effort and commitment from the government, as well as the support of civil society and the private sector.

Addressing Corruption for Sustainable Growth

As Mongolia seeks to achieve sustainable and inclusive growth, addressing corruption in the finance sector must be a top priority. The country’s economic future depends on it.