Corruption is considered one of the largest global issues and affects both rich and poor nations. It occurs at all levels of society from governments to businesses. Corruption has negative impacts including undermining political development, economic growth, and people's health. It can be classified as grand, petty, or political depending on the money involved and sector impacted. In Mongolia, grand corruption especially in the mining sector poses the most serious threat. The Independent Authority Against Corruption investigates cases and has initiated over 200 investigations, with 16 resulting in convictions and over 50 referred for prosecution. As a result of these achievements, the IAAC is earning public trust and confidence to lead the fight against corruption through partnerships across different sectors of society.

1. Corruption
Corruption is one of the biggest global issues, ahead of extreme poverty, unemployment,
the rising cost of food and energy, climate change, and terrorism. It is thought to be both a major
cause and a result of poverty around the world. It occurs at all levels of society, from local and
national governments, civil society, judiciary functions, large and small businesses, military and
other services and so on. Corruption affects the poorest the most, in rich or poor nations, though
all elements of society are affected in some way as corruption undermines political development,
democracy, economic development, the environment, people’s health and more.
Corruption is the abuse of entrusted power for private gain. Corruption can be classified as
grand, petty and political, depending on the amounts of money lost and the sector where it occurs.
Grand corruption is bribery or embezzlement of huge sums of money by those at the highest levels
of government. Petty corruption refers to everyday abuse of entrusted power by low- and mid-
level public officials in their interactions with ordinary citizens, who often are trying to access
basic goods or services in places like hospitals, schools, police departments and other agencies.
Political corruption refers to the misuse of political power for private gain for preserving or
strengthening power, or personal enrichment, or both.
Corruption continues at all levels of society in Mongolia. Grand corruption, particularly in
the key mining sector, should be considered to be the most serious threat to economic and political
stability due to its potential to undermine public confidence in government. Factors contributing
to corruption include conflicts of interest, lack of transparency, lack of access to information, a
civil service system without adequate protection for government employees, and weak government
control of key institutions.
The Independent Authority Against Corruption (IAAC) is the principal agency responsible
for investigating corruption cases. The Organized Crime Department of the National Police
Agency also investigates various types of corruption cases and often assists the IAAC in its
investigations. Since the establishment of the IAAC, a corruption reporting telephone hotline
“1969” was established to receive information and complaints from the citizens. During the first
nine months of last year, the IAAC reported that it initiated 207 investigations, of which 16 cases
resulted in conviction. Of the remaining cases, 54 were referred for prosecution, 29 were referred
to other agencies, 14 were merged with other criminal cases, and 42 were dropped at either the
prosecutor or court level. As of September 30, there were 42 cases still under investigation.
As a result of these achievements, the IAAC is earning public trust and confidence. A
growing proportion of the Mongolian population believes that the IAAC can, and should, lead the
fight against corruption. This public support is extremely important as a single agency cannot
combat corruption alone. To fight corruption successfully, the IAAC must work in partnership
with government ministries, the judiciary, the Parliament, the private sector, professional bodies,
civil society groups, donor agencies, the media, and the public.