Mongolia

New Documents

The Asia/Pacific Group on Money Laundering published its third follow-up report on Mongolia’s anti-money laundering and counterterrorist financing framework, assessing the country’s compliance with the Financial Action Task Force 40 Recommendations and its measures to ensure technical compliance.

The Bank of Mongolia published its 2018 annual report, summarizing its reformed regulatory policies, initiatives and enforcement activities.

News

Enforcement Actions

0 Items Found


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 : 29 Substantial : 0
Partially Compliant : 3 Moderate : 2
Non-Compliant : 0 Low : 9

A "graylisted" country as of Oct. 18, 2019. Mongolia's technical compliance was most recently re-rated in a Sept. 4, 2020 follow-up report

BASEL i

Rank : 30/141
Score : 6.24/10

TRANSPARENCY INTERNATIONAL i

Rank : 106/180
Score : 35/100

Tax Justice Network i

Rank : N/A
Score : N/A