Financial Crime World

Mongolia Tackles Financial Inclusion and Crime Prevention through National Forum

In a bid to strengthen its financial sector, Mongolia has taken significant steps towards promoting financial inclusion and preventing crimes related to finance. The country’s Financial Regulatory Commission (FRC) recently hosted the “Development of Financial Market National Forum” in collaboration with international organizations such as the Asian Development Bank (ADB) and Japan Poverty Reduction Fund.

Key Objectives of the Forum

The forum brought together high-level policymakers, regulators, and representatives from foreign and international organizations to discuss key issues affecting Mongolia’s financial sector. The event aimed to:

  • Develop relationships among relevant actors
  • Promote fair competition
  • Increase public confidence in markets
  • Enhance sector efficiency

Mongolia’s Progress in Financial Inclusion

Mongolia has made notable progress in financial inclusion, with:

  • 75% of its population over 15 years old owning a bank account
  • High usage of mobile banking
  • However, the country still faces challenges such as:
    • Low savings rates
    • High-cost financial services
    • Limited knowledge about savings and insurance among individuals

Integration into Regional Financial Activities

According to Ms. Narantuya Zagdkhuu, Chair at FRC, Mongolia’s integration into regional financial activities requires meeting international regulatory standards and improving capacity for competence.

Key Discussion Topics

The National Strategy of Financial Market Development-2025 was a key topic of discussion during the forum. This strategy includes the National Financial Inclusion Strategy, co-submitted by the FRC, Ministry of Finance, Bank of Mongolia, and World Bank.

A session on “Financial Inclusion—Ways to Reduce Poverty” was also held in partnership with ADB and European Bank for Reconstruction and Development. Pavel Shoust from Russian Microfinance Center discussed the role of digital financial services in enhancing effectiveness and financial inclusion.

Importance of Evidence-Based Financial Inclusion Policy

Regional Coordinator for Asia at AFI, David Ambadar, emphasized the importance of implementing evidence-based financial inclusion policy in Mongolia. He noted that smart financial inclusion policies can:

  • Reduce inequality
  • Contribute to sustainable economic development and stability
  • Be an invaluable part of mainstream economic and development work