The International Investment Bank (IIB), the Moscow-based multilateral development bank, together with Slovakia will advise Mongolia on how to fight money laundering and the financing of terrorism, it was announced at an IIB council meeting in Bratislava on 6 December.

Mongolia, a shareholder of the IIB, needs to improve regulation of its financial system as part of the requirements of its ongoing USD 5.5bn assistance programme led by the International Monetary Fund (IMF).

European Union finance ministers also put Mongolia on a blacklist earlier this week as a “non-co-operative tax jurisdiction” for failing to help fight international tax evasion. The EU said the countries including Mongolia failed to meet international standards and had not given sufficient commitments that they would change their ways.

Under the memorandum of understanding for the project – which was signed by the IIB and the Mongolian Financial Regulatory Commission (FRC) on 6 December – the existing Mongolian legal and regulatory framework will be reviewed in respect of the recommendations the country has received for combatting money laundering and the financing of terrorism, and then suggestions for improvements will be made to the Mongolian government for implementation. The project also aims to help raise awareness of the anti-money laundering and counter-terrorism financing issues among the general public and financial sector in Mongolia.