A consolidated report assessing compliance risks across Mongolia’s regulated financial sector for 2024 was officially issued on April 9. The report is based on the newly approved “Compliance Risk Assessment Methodology”, which aims to improve the compliance environment, ensure lawful operations and foster a culture of accountability within financial institutions.
As part of the broader evaluation, the implementation of the Corporate Governance Code was also reviewed. According to the report, 46.7 percent of the surveyed organizations were rated as “good” in terms of corporate governance practices, while another 46.7 percent were rated “average”. Only 6.6 percent received a rating of “insufficient”, highlighting both progress and areas that require targeted improvement in governance standards.
The diversity of the financial sector was also reflected in the composition of the organizations surveyed. Among them, 39.4 percent had between six and 11 years of operational experience, while 27.7 percent had been in business for up to five years. Institutions with 12 to 17 years of experience made up 17 percent of the total, and 15.9 percent had over 18 years of experience in the sector. These variations in institutional maturity were noted as relevant factors in how compliance and governance frameworks are adopted and applied. In terms of physical presence and operational scale, 40.4 percent of the organizations reported having no branch offices, while 31.9 percent operated between one to three branches. A further 14.9 percent had more than ten branches, and 12.8 percent had between four and nine. 
The methodology provides a structured framework for identifying, assessing and managing compliance risks. It serves as both a regulatory tool and a guide for institutions to recognize vulnerabilities, evaluate potential risks and design appropriate mitigation strategies. The objective is not only to prevent regulatory breaches but also to enhance long-term institutional resilience and credibility.
The assessment was based on compliance reports submitted by various types of financial institutions operating under regulatory supervision. These reports were evaluated using the standard methodology, allowing for a unified understanding of sector-wide compliance challenges and risk patterns. The findings were synthesized into a comprehensive national report that reflects the current state of compliance within the financial sector.
According to regulators, compliance plays a critical role in ensuring that financial activities are carried out in accordance with applicable laws and standards. Beyond legal adherence, the compliance risk assessment process helps detect weaknesses in governance and internal control systems. It supports the early identification of potentially harmful practices and enables institutions to implement timely and effective preventive measures.

Published Date:2025-04-14