Money Laundering Affects on Bank Profitability

Abstract

In 2019, Financial Action Task Force /FATF/ evaluated the implementation of the recommendations on anti-money laundering and terrorism, and placed Mongolia on the list of countries to be monitored or the "gray list", which not only caused a scandal in society and politics, but also affected the economy and foreign relations of Mongolia. As a result of cooperation between public and private sector organizations for the purpose of combating money laundering, at the FATF Asia-Pacific Anti-Money Laundering Group meeting held in August 2022, 39 out of 40 recommendations in Mongolia were evaluated as "fully implemented" or "mostly implemented". As for Mongolia, government agencies are intensively organizing activities to improve regulatory measures and control mechanisms. Foreign researchers have done a lot of research on combating money laundering, detecting it, ensuring transparency, effective regulation, and how money laundering affects the economy. This study was conducted since there is a lack of research on money laundering in Mongolia, particularly on how money laundering affects the economy and banking and finance sector.