Financial Crime World

MINISTRY OF JUSTICE AND HOME AFFAIRS: NON-PROFIT ORGANIZATIONS AND TRANSPORTATION SECTOR AT RISK OF FINANCING TERRORISM

Mongolia’s Non-Profit Organizations and Transportation Sector at Risk of Financing Terrorism

Ulaanbaatar, Mongolia - A recent report by the Ministry of Justice and Home Affairs has revealed that non-profit organizations and the transportation sector in Mongolia are vulnerable to financing terrorism.

Non-Profit Organizations: The Hidden Risks

  • As of June 2018, there were 18,943 non-government organizations registered in Mongolia.
  • However, only 3,862 of them submitted their tax statements within the time limit defined by law.
  • Many non-profit organizations are at risk of committing money laundering and financing terrorism crimes due to a lack of understanding of these risks.

Transportation Sector: A High-Risk Area

  • The transportation sector, particularly freight forwarding companies, is considered high-risk due to its vulnerability to financing terrorism and weapon proliferation.
  • Only 100 out of 300 licensed freight forwarding companies in Mongolia are actively engaged in transportation operations with extended licenses.
  • The lack of monitoring and control measures has increased the risk of financing terrorism and weapon proliferation.

Recommendations and Actions

  • Competent state authorities should collaborate on exchanging information and conducting supervision to prevent potential risks.
  • The General Authority for Customs, General Police Office, and other relevant agencies have been working together to monitor the activities of non-profit organizations and transportation companies.
  • Non-profit organizations are required to register with the General Authority for Intellectual Property and State Registration, as well as with the Mongolian Immigration Agency.
  • They must also submit tax statements in accordance with tax types to controlling bodies.

International Cooperation

  • 95 subsidiaries or representatives of foreign non-government organizations operating in Mongolia have been identified, with 85 of them actively conducting activities in various fields such as politics, economics, environment, education, health, humanitarian, and social welfare.
  • International and foreign non-government organizations have been raising awareness about the importance of civil society and advising on the need to actively collaborate with civil society to enhance supervision on state activities.

Conclusion

The Ministry has urged all relevant stakeholders to work together to prevent potential risks and ensure that these sectors are not used for financing terrorism or weapon proliferation.