Mongolia Country Summary

FATF Status

Mongolia is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Mongolia was undertaken in 2023. According to that Evaluation, Mongolia was deemed Compliant for 9 and Largely Compliant for 31 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 0 of the Effectiveness & Technical Compliance ratings.

Mongolia faces significant challenges related to corruption and crime, with widespread public perceptions of high-level government corruption impacting investment and governance. Despite some efforts to address these issues through parliamentary hearings and legal frameworks, many citizens remain skeptical about the effectiveness of these measures, as investigations often yield minimal consequences for those involved in corrupt practices.

Mongolia presents a mixed economic landscape for investors, characterized by significant opportunities in its natural resource sectors, particularly mining and agriculture, alongside notable risks stemming from political sensitivities and regulatory unpredictability. While the country generally offers favorable conditions for foreign investment, including minimal market-access barriers, the lack of a stable business environment, ineffective dispute resolution mechanisms, and the perception of preferential treatment for state-owned enterprises create substantial challenges for potential investors. Recent legislative efforts to enhance the investment climate have garnered support from the business community; however, concerns remain regarding the consistent implementation of these laws, which may hinder Mongolia's ability to convert investor interest into tangible investment.