Financial Crime World

Mongolia’s Ongoing Struggle with Corruption: New Anti-Corruption Strategy Unveiled Amid Rising Public Outrage

Introduction

Despite its rich natural resources and economic potential, Mongolia has long been plagued by corruption. The country’s low ranking in the Transparency International Corruptions Perceptions Index (CPI) score of 33 out of 100 puts it at 121st place globally, behind neighbors Russia and China.

The Government’s Response: “Years of Fighting Corruption”

The Mongolian government has launched an anti-corruption strategy aimed at tackling corruption in all facets of public life, particularly in procurement and public service. Dubbed “Years of Fighting Corruption,” the initiative is a response to increasing public outrage over high-profile cases such as the coal thieves scandal, missing funds from a small-to-medium enterprise (SME) support fund, and the green bus scheme.

International Commitments

Mongolia’s international commitments, including the United Nations Convention Against Corruption, which it ratified in 2006, drive the government’s efforts. The administration of Prime Minister Oyun-Erdene Luvsannamsrai has declared 2023 and 2024 as “Years of Fighting Corruption,” emphasizing the importance of rooting out corruption for the country’s development and international reputation.

Combating Corruption: A Collaborative Approach

  • Report by Mongolia’s Independent Authority Against Corruption (IAAC): The commission received over 3,700 complaints and tips from citizens, enterprises, organizations, and officials in 2023. Of those, 1,010 were related to alleged corruption and conflict of interest, while 2,156 were tips about crimes.
  • International cooperation: Collaboration with organizations such as the Brookings Institution’s Leveraging Transparency to Reduce Corruption (LTRC) aims to strengthen transparency and accountability, fundamental in implementing anti-corruption measures.
  • Holding authorities accountable: International cooperation will also hold authorities accountable if recommendations are not adopted. For example, the Financial Actions Task Force (FATF) has recommended strengthening Mongolia’s compliance with international standards for preventing financial crimes.

Key Initiatives

  • Joint initiative with Interpol: The government has launched a joint initiative to extradite corruption suspects and bring them back to Mongolia.
  • Asset recovery: The strategy also focuses on asset recovery, transparency, and “extradition and repatriation of those under indictment.”
  • Proposed anti-corruption bill: A proposed anti-corruption bill, known as the Sweeper Act, aims to prevent parliamentarians and their families from becoming influential shareholders in government-funded projects.

Conclusion

As Mongolia continues to seek foreign investments, tackling corruption is of utmost importance. The country’s participation and collaborative efforts with international organizations will have an impact on its accountability as it makes more effort to tackle high-level corruption.