Financial Crime World

Mongolia’s Independent Authority Against Corruption: A Global Initiative to Combat Financial Crimes

Stolen Asset Recovery Initiative’s Role in Capacity Building and Policy Assistance in Mongolia

In the land-locked country of Mongolia, the fight against financial crimes has gained momentum with the support of international organizations like the Stolen Asset Recovery (StAR) Initiative. Having operated in Mongolia for the past twelve years, StAR and its partners have provided essential capacity building training and policy and legal assistance to the Independent Authority Against Corruption (IAAC).

Combating Corruption and Financial Crimes: Years of Expertise and Resources

The success of IAAC in Mongolia can be attributed to the expertise and resources StAR brings in from international collaborations. With financial assistance from Korea and the United States, specialists have been engaged to share knowledge and skills in critical areas such as:

  • Mutual legal assistance in criminal matters: Assistance offered between countries in legal matters concerning crimes committed across national borders
  • Civil proceedings for asset recovery: Legal processes used to recover stolen assets
  • Financial investigations: Techniques and methods employed to explore potential financial crimes
  • Asset management: Proper handling and safeguarding of seized assets
  • Asset freezing: Freezing of assets to maintain their value prior to confiscation or other proceedings

Significant Accomplishments in Asset Recovery and Regional Partnerships

The collaboration between IAAC and StAR has resulted in several accomplishments:

  • First asset recovery victory: Mongolia secured its first-ever asset recovery victory, worth $1.1 million, in 2018, through a combined effort of international informal cooperation and formal mutual legal assistance (MLA) with the United Kingdom.
  • Regional partnerships: Mongolia has formed regional partnerships with ARIN-AP and the GlobE Network to expand its casework and engage with requested countries.

Adapting to the Virtual World: Training and Technical Assistance During COVID-19

With the advent of the COVID-19 pandemic, StAR delivered training and technical assistance to a wider audience in Mongolia through webinars and workshops. Notable sessions included:

  • Financial investigations workshop: Over 150 personnel from six organizations attended a workshop focusing on financial investigations.
  • Webinars on emerging threats: Over 350 prosecutors and detectives participated in webinars exploring topics such as virtual assets, the dark web, and civil recovery.

Enhancing Internal Coordination and Cooperative Efforts

StAR’s contribution to Mongolia’s anti-corruption initiatives includes implementing a Case Management System (CMS) designed to strengthen internal coordination and cooperation between investigators and prosecutors. The CMS has proven particularly useful for prosecutors managing complex cases involving corruption, procurement fraud, tax evasion, and money laundering.

Strengthening Mongolia’s MLA Regime and Mechanisms: A Focus on International Asset Recovery and Prosecutorial Roles

Throughout its engagement in Mongolia, StAR has significantly contributed to enhancing the country’s Mutual Legal Assistance (MLA) regime and mechanisms. Notable achievements include:

  • Finalizing and approving the MLA guidance chapter: The MLA guidance chapter was completed in 2015 and approved by the Prosecutor General of Mongolia.
  • Addressing gaps in the MLA Guidance: StAR has focused on addressing identified gaps, primarily concerning international asset recovery, the prosecutorial role when public interest is harmed, and communication with foreign authorities to enforce domestic court orders and collect additional evidence.
  • Updating the MLA Guidance: The updated MLA Guidance was approved in May 2021 by the Council Meeting led by the Prosecutor General of Mongolia. (Decree No. A/65)

A Long-Term Commitment: Continued Personnel Development and Anti-Corruption Progress

The fight against financial crimes in Mongolia requires sustained investment and commitment to personnel development. StAR’s capacity-building efforts will continue by partnering with academia, hosting targeted events on emerging threats and new methods, and improving asset management processes.