Combatting corruption, money laundering and climate change top of agenda during visit to Mongolia of OSCE Co-ordinator of Economic and Environmental Activities

Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) Ambassador Bakyt Dzhusupov concluded his first visit to Mongolia on 28 August. During his visit, he met with officials across the country to discuss opportunities for enhanced co-operation on environmental and economic security.

Good economic governance and combatting corruption and money laundering using virtual assets was the focus of meetings with officials from the Independent Authority Against Corruption (IAAC), Bank of Mongolia (Central Bank), Financial Intelligence Unit of the Bank of Mongolia, Ministry of Justice and Internal Affairs, and the Prosecutor General’s Office.. He also met with officials from the Ministry of Environment and Energy and the National Forest Agency to discuss co-operation in the area of climate change, water management, disaster risk reduction and wildfire management, as well as with the Ministry of Foreign Affairs, noting  a high level of enthusiasm and willingness on the side of Mongolian counterparts to enhance co-operation with the OSCE in the economic and environmental dimension.

Mongolia joined the OSCE in 2012 and has been working closely with the Organization on several topics since, including as part of an extra-budgetary project on anti-corruption efforts from 2017-2019. In the scope of this project, OCEEA has organized several modular training courses for Mongolian officials that are focused on legal frameworks surrounding anti-corruption measures, corruption risks in public procurement, investigation of corruption crimes, and corruption risks in customs.

The OSCE has also closely co-operated with Mongolia in the area of climate change and wildfire risk reduction. In 2015, in partnership with the Global Fire Monitoring Center (GFMC), OCEEA supported Mongolia in establishing the Regional Central Asia Fire Management Resource Center at the National University of Mongolia in Ulaanbaatar.

In addition to conversations on strengthening collaboration in the economic and environmental dimensions, Ambassador Dzhusupov used his visit to kick off the OCEEA Introductory Workshop on Combating Money Laundering with the Use of Virtual Assets and Blockchain-based Finance.  The two-day workshop, which took place in Ulaanbaatar on 27 and 28 August, brought together 29 representatives from relevant agencies across the country. During the workshop, participants were introduced to the fundamentals of blockchain technology, compliance processes in blockchain-based finance, blockchain analytics, tracing transactions on blockchains, as well as regulatory frameworks. Ambassador Dzhusupov highlighted the high level of interest and engagement in the workshops, noting that this was both encouraging and indicative of the importance collectively placed on addressing the security and economic governance challenges posed by money laundering and financial crime.

“Combating money laundering, particularly through the use of virtual assets and cryptocurrencies, is a key priority for the OSCE. It is essential that we continue to focus on establishing comprehensive national and international legal frameworks, enhancing cooperation between law enforcement agencies, and implementing effective supervision regimes. These efforts are critical to maintaining the integrity of our financial systems and safeguarding our economies from the threats posed by illicit activities,” Ambassador Dzhusupov said in his opening remarks.  “The success of this project in Mongolia will not only contribute to national efforts but will also complement regional and international endeavours to combat money laundering through the use of virtual assets,” he added.

Azjargal Gavaasuren, Deputy Director and Commissioner in Charge of the IAAC, participated in the two-day workshop and noted the value the workshop brings in the light of quickly evolving technologies.  

“Cryptocurrencies are taking us to a new level and it is a necessity to understand these tools since the technology is developing rapidly – that is why the OSCE workshop is so important for us,” said Gavaasuren.

The training is part of an OSCE-led extra-budgetary project on “Innovative policy solutions to mitigate money-laundering risks of virtual assets”, funded by Germany, Poland, Romania, the United Kingdom and the United States. The project supports OSCE participating States in building national capacities to mitigate criminal risks related to virtual assets and cryptocurrencies.