Since the 'Panama Papers' scandal broke, there has been speculation about financial entanglements between some Mongolian government officials and the Mossack Fonseca law firm. Discoveries of offshore bank accounts and private entities under the name of various high-ranking government officials have damaged public confidence.

The Cabinet has discussed  draft amendments to the Law on Adjustment and Prevention of Conflict of Interests in the Public Service, and resolved to submit the bill to the State Great Khural (Parliament).

The bill bans government officials, who are obliged to submit annual income statement to the Anti-Corruption Agency (ACA), from owning bank accounts and private entities in offshore regions.

According to the statistics, a total of 13,140 companies with investments from 110 countries have been registered in Mongolia, of which 920 companies or 7.0 percent have investments in offshore regions. Between 1990 and 2015, a total of USD 14.2 billion in foreign investment entered Mongolia. Offshore investments constituted USD 10.8 billion or 76 percent of this amount.