Mongolia

New Documents

The Asia/Pacific Group on Money Laundering released its fifth follow-up report on Mongolia’s compliance with the Financial Action Task Force Recommendations on implementing an anti-money laundering and counterterrorist financing framework.

The Asia/Pacific Group on Money Laundering published a fourth follow-up report on Mongolia, highlighting that the country was re-rated on its compliance with one Financial Action Task Force Recommendation.

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Enforcement Actions

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Important Facts

  • The U.S. State Department identifies Mongolia as a jurisdiction of concern. The jurisdiction is not a regional financial center. There are few financial and economic crimes, although numbers have increased in the last five years. Mongolia is vulnerable to low-grade transnational crime due to the growth in tourism, investment and remittances from abroad. However, the overall rate of these crimes has not increased. Mongolia's limited capacity to monitor its extensive borders with Russia and China is a liability in the fight against smuggling and narcotics trafficking, but drug use and trafficking remain limited and unsophisticated. The country has a black market for smuggled goods that appears largely tied to tax avoidance rather than drug trafficking. There are no indications that international narcotics traffickers exploit the banking system and no instances of terrorist financing have been reported. Although authorities have opened financial crime cases, the lack of a single successful prosecution over the past few years illustrates deficiencies in enforcement.
  • KYC Covered Entities:  Banks, lending, factoring, and financial leasing institutions; securities market participants, issuers of guaranties and payment instruments; insurance companies; savings and loan cooperatives; trusts; investment funds; real estate companies and public notaries; remittance services and foreign currency exchanges; and pawnshops
  • STR Covered Entities:  Banks, lending, factoring, and financial leasing institutions; securities market participants, investment funds, issuers of guaranties and payment instruments; savings and loan cooperatives; trusts; insurance companies; real estate companies and public notaries; remittance services and foreign currency exchanges; and pawnshops
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 0 (2015); Convictions: 0 (2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 0
Largely Compliant : 31 Substantial : 0
Partially Compliant : 1 Moderate : 2
Non-Compliant : 0 Low : 9

Mongolia was removed from the FATF "gray list" on Oct. 23, 2020. Mongolia's technical compliance was most recently re-rated in an Aug. 2, 2022, follow-up report.

BASEL i

Rank : 86/110
Score : 6.09/10

TRANSPARENCY INTERNATIONAL i

Rank : 111/179
Score : 35/100

Tax Justice Network i

Rank : N/A
Score : N/A