Financial Crime World

Mongolia Steps Up Financial Crime Awareness Campaign Amid Global Concerns

Introduction

In a bid to tackle the growing threat of money laundering and terrorism financing, Mongolia is intensifying its efforts to raise awareness about financial crimes. The country’s financial sector has been identified as vulnerable to these illicit activities, which are not only detrimental to economic security but also hinder sustainable development and perpetuate inequality.

Sources of Financial Crimes in Mongolia

The primary sources of money laundering crimes in Mongolia include:

  • Human trafficking
  • Narcotics sales
  • Arms smuggling
  • Corruption
  • Bribery
  • Tax evasion
  • Environmental crimes

These illicit activities have exploited the country’s weak financial system, transforming it into a transit hub for global financial crime networks.

International Cooperation and Recommendations

To combat this menace, Mongolia has been working closely with international organizations such as:

  • The Asia/Pacific Group on Money Laundering (APG)
  • The Financial Action Task Force (FATF)

The APG has periodically evaluated Mongolia’s anti-money laundering and combating terrorism financing (AML/CFT) system since 2006, while the FATF has provided recommendations for strengthening the country’s AML/CFT framework.

Progress in Implementing Anti-Money Laundering Measures

Mongolia’s revised AML/CFT law was approved in 2013 to align with FATF Recommendations. However, the country was initially placed on a “grey list” due to non-compliance with certain regulations. Following a parliamentary resolution in January 2014, Mongolia was removed from this list after demonstrating significant progress.

The APG conducted a second-round assessment of Mongolia’s AML/CFT system in November 2016, providing recommendations for an action plan that was due for completion by October 2018. Additionally, international organizations such as the International Monetary Fund (IMF) and Asian Development Bank (ADB) have been offering technical assistance to help Mongolia strengthen its AML/CFT capacity.

National Strategy for Anti-Money Laundering and Countering Financing of Terrorism

The FATF Recommendations serve as a global standard for AML/CFT frameworks, facilitating cooperation between countries in the financial sector. To fully implement these recommendations and bolster its AML/CFT capabilities, Mongolia has developed a National Strategy for anti-money laundering and countering financing of terrorism (2017-2020).

Enhancing Public Awareness

As part of this strategy, the Mongolian government is enhancing public awareness about financial crimes through campaigns and educational programs. The aim is to empower citizens with knowledge on how to identify and report suspicious transactions, ultimately contributing to a safer and more secure financial environment.

By intensifying its efforts to combat financial crime, Mongolia is not only protecting its economy but also upholding its commitment to international cooperation in the fight against money laundering and terrorism financing.