Financial Crime World

Organized Crime in Mongolia: A Complex Challenge

Mongolia is grappling with significant organized crime issues, including corruption, human trafficking, and financial crimes. These activities are driven by foreign demand and facilitated by the country’s criminal networks, which have ties to external actors.

Key Organized Crime Issues in Mongolia

  • Corruption: Politicians and government officials are allegedly involved in various organized crime activities, particularly in illegal mining.
  • Human Trafficking: Domestic criminal networks operate in human trafficking, driven by foreign demand.
  • Financial Crimes: Money laundering and wildlife crime are also significant concerns.

Government Response to Organized Crime

The Mongolian government has implemented judicial and law enforcement reforms to address the rise of specific crime markets. However, efforts to counter corruption have been ineffective, and there are concerns about the erosion of democracy.

Mongolia is a party to international treaties and conventions on organized crime and appears constructive in promoting international cooperation. The country’s legal framework covers all organized crime offenses of interest, but issues with corruption and political influence in the judiciary and law enforcement agencies remain.

Prison System and Anti-Organized Crime Efforts

The prison system suffers from deficiencies, including mistreatment and torture allegations. Specialized anti-organized crime units have been formed within law enforcement agencies, but assessments of their effectiveness are difficult due to corruption.

Economic and Financial Environment

Mongolia’s economic and financial environment is vulnerable to illicit flows, with high-risk money laundering and terrorist financing. The country remains on the Financial Action Task Force’s grey list due to key deficiencies in AML/CFT legislation.

Civil Society and Cooperation

Civil society is active in Mongolia, particularly in human trafficking research and victim care, as well as anti-corruption efforts. NGOs and the government cooperate well, with mechanisms for formalizing their collaboration in place.

Conclusion

Mongolia faces significant challenges in addressing organized crime, including corruption, inadequate institutional capacity, and limited resources. To effectively combat organized crime, the country needs to strengthen its institutions, improve cooperation between law enforcement agencies, and enhance its AML/CFT framework.