Financial Crime World

Financial Inclusion and Crime Prevention in Mongolia

Mongolia’s efforts to combat financial crime have been assessed by international experts, who found that while progress has been made, there are still areas for improvement.

Assessment of Financial Crime Prevention Efforts

Mutual Evaluation Report

The country’s mutual evaluation report, published last year, evaluated its compliance with global standards on anti-money laundering (AML) and combating the financing of terrorism (CFT). The report assessed Mongolia’s progress in several key areas:

  • Risk assessment: Mongolia received high ratings for its risk assessment practices.
  • National cooperation and coordination: The country scored highly in this area, demonstrating effective collaboration between authorities.
  • Regulation and supervision of financial institutions: However, Mongolia scored lower in this area, indicating a need for improvement.

Progress in Implementing Targeted Financial Sanctions

One area where Mongolia has made significant progress is in the implementation of targeted financial sanctions related to terrorism and terrorist financing. The country’s authorities have been effective in identifying and freezing assets linked to terrorist organizations.

Challenges Ahead

However, there are still challenges ahead for Mongolia. The report noted that:

  • Customer due diligence practices: Mongolia needs to improve its customer due diligence practices, particularly when dealing with politically exposed persons (PEPs).
  • Financial intelligence unit resources: The country’s financial intelligence unit (FIU) needs more resources and authority to effectively conduct investigations into suspected financial crimes.

Strengthening AML/CFT Framework

To address these gaps, Mongolian authorities are working to strengthen their AML/CFT framework. The country is also increasing its efforts to promote financial inclusion, which can help prevent crime by providing greater access to financial services for marginalized communities.

Promoting Financial Inclusion

Financial inclusion can play a crucial role in preventing crime by:

  • Providing greater access to financial services for marginalized communities
  • Encouraging economic growth and development
  • Reducing the risk of financial exclusion and its associated social problems