This information is derived from the State Department's Office of Investment Affairs' Investment Climate Statement. Any questions on the ICS can be directed to EB-ICS-DL@state.gov

Domestic and foreign investors continue to report that corruption remains a cause for concern in Mongolia at both the “petty” or administrative and “grand” or elite levels. Instances of grand corruption reinforce the existing linkages between economic and political power that have negatively affected and in some cases ultimately derailed projects in Mongolia. Transparency International’s 2016 Corruption Perception Index ranked Mongolia 87 of 176 countries globally, largely on par with its rankings from previous years.

The primary law governing anti-corruption efforts is the 2006 Anti-Corruption Law (ACL), which sets criminal penalties for official corruption. However, the ACL is poorly enforced, and corruption continues at all levels of government – with some officials enjoying apparent impunity. Factors contributing to corruption include conflicts of interest, lack of transparency, lack of access to information, an inadequate civil service system, and weak government control of key institutions. Parliament approved the National Program to Combat Corruption in November 2016, and the program is currently under development. In addition, in June 2016 Mongolia initiated its second National Action Plan under the Open Government Partnership.

The law proscribes fines and imprisonment of up to five years for the solicitation or acceptance of bribes by government officials. The law also criminalizes the offering of bribes to officials. NGOs previously alleged that the threat of prosecution of both individuals offering bribes and officials involved gave neither guilty party motivation to report the episodes after the fact and thus resulted in significant underreporting. After the government began granting limited immunity for those paying smaller bribes, the reporting of bribes increased. Members of Parliament are immune from prosecution during their tenure, and this immunity can preclude litigation of allegations of corruption.

The Independent Authority Against Corruption (IAAC) is the principal agency responsible for investigating corruption cases, although the Organized Crime Department of the National Police Agency also investigates corruption cases and often assists in IAAC investigations. The IAAC is responsible for investigating complaints against police, prosecutors, and judges. As reported in the State Department’s Human Rights Report, questions about the IAAC’s political impartiality remain, due in part to the President’s power to appoint the head of the IAAC. Despite this potential conflict of interest, the public views the agency as relatively effective. In response to complaints that it was not making the results of its investigations and subsequent court proceedings public, the IAAC has held periodic press conferences about its activities. In addition, the IAAC increased its public awareness and prevention efforts through activities such as distributing educational materials for children and conducting outreach trips to the provinces.

For more information, see The Asia Foundation’s surveys on corruption in Mongolia and the State Department’s 2016 Mongolian Human Rights Report.

Resources to Report Corruption

Independent Agency Against Corruption (IAAC)
District 5, Seoul Street 41
Ulaanbaatar, Mongolia 14250
+976-70110251; 976-11-311919
contact@iaac.mn

Transparency International Mongolia
Tur-Od Lkhagvajav, Chairman of the Mongolian National Chapter
Zorig Foundation, 2nd floor
Peace Avenue 17, Sukhbaataar District
Ulaanbaatar, Mongolia
+976 9919 1007; +976 9511 4777; +976 95599714
lturod@gmail.com

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