VZCZCXYZ0013
RR RUEHWEB

DE RUEHUM #0861/01 3420710
ZNR UUUUU ZZH
R 080710Z DEC 06
FM AMEMBASSY ULAANBAATAR
TO RUEHC/SECSTATE WASHDC 0588
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEABND/DEA HQ WASHDC

UNCLAS ULAANBAATAR 000861 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR INL, EAP/RSP, and EAP/CM 
JUSTICE FOR OIA, AFMLS, AND NDDS 
TREASURY FOR FINCEN 
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL 
 
E.O. 12958: N/A 
TAGS: SNAR MG
SUBJECT: Mongolia INCSR: Part 1 
 
REF:  STATE 209560 
 
¶1.  The following is post's submission for Part 1 of the INCSR. 
 
¶2.  Begin text: 
 
¶I. Summary 
 
Drug trafficking and abuse are not widespread in Mongolia, but 
continue to rise and draw the attention of the government. 
Mongolia's young, burgeoning urban population is especially 
vulnerable to the growing drug trade. The government continues to 
implement the National Program for fighting Narcotics and Drugs 
adopted in March 2000. The initial five-year plan was completed in 
2005, but the government has not yet decided on any changes for the 
next period. The National Council headed by the Chief of Police 
coordinates implementation of this program. The program is aimed at 
preventing drug addiction, drug related crimes, creating a legal 
basis for fighting drugs, implementing counternarcotics policy, and 
raising public awareness of the drug abuse issue. Mongolia is a 
party to the 1988 UN Drug Convention. 
 
II. Status of Country 
 
Mongolia's long unprotected borders with Russia and China are 
vulnerable to all types of illegal trade, including drug 
trafficking. Police believe most smuggled drugs come from China, and 
are carried by Mongolian citizens. Illegal migrants, mostly 
traveling from China through Mongolia to Russia and Europe, also 
sometimes transport and traffic in drugs. Police express particular 
concern that, if drug use in Mongolia continues to rise, organized 
crime involvement in the trade will grow beyond the current low 
levels. The government has made the protection of Mongolia's borders 
a priority. U.S.-sponsored projects to promote cooperation among 
security forces and training have provided some assistance. A lack 
of resources and technical capacity, along with corruption in the 
police forces and other parts of government, hinder Mongolia's 
ability to patrol its borders, detect illegal smuggling, and 
investigate transnational criminal cases. 
 
III. Country Actions Against Drugs in 2006 
 
Policy Initiatives/Law Enforcement. The Mongolian government and 
law-enforcement officials have increased their participation in 
international fora focused on crime and drug issues. Mongolia became 
a member of the Asia-Pacific Group (APG) on Money Laundering in 2004 
and has committed to adhere to Financial Action Task Force (FATF) 
standards, while seeking participation and eventual membership in 
the FATF.   The APG conducted an initial peer review of Mongolia 
late in 2006.  Mongolia passed an anti-money laundering law in July, 
and began to work toward implementation. 
 
Drug Flow/Transit. Marijuana is the most widely used illegal drug. A 
small amount of marijuana is grown within the country, and appears 
to be consumed locally. Reports indicate that the availability and 
use of marijuana, heroin, cocaine, amphetamines, and 
over-the-counter drugs have increased. However, no reliable surveys 
exist of drug usage, nor is there any official database of drug 
convictions. The Mongolian government is alert to precursor chemical 
production and the potential for diversion. The government has 
closed some facilities suspected of diverting chemicals. 
 
Demand Reduction. Domestic, nongovernmental organizations work to 
fight drug addiction and the spread of narcotics abuse. 
International donors are working with the government to help 
Mongolia develop the capacity to address narcotics and related 
criminal activities before they become an additional burden on 
Mongolia's development. 
 
Corruption. Mongolian internal corruption and related criminal 
activity appear unrelated to narcotics activities. An 
anti-corruption law was passed in July and entered into force on 
November 1, but a new anti-corruption agency had not yet begun 
operations by the end of the year.  The weakness of the legal system 
and financial structures leaves Mongolia vulnerable to exploitation 
by drug traffickers and international criminal organizations, 
particularly those operating in China and Russia. The reopening of 
the North Korean Embassy in Ulaanbaatar in August 2004 also 
heightens concern that the North Korean Government, through its 
Embassy in Ulaanbaatar, may again seek (as it did in the late-1990s) 
to finance North Korean diplomatic and other activities through 
narcotics trafficking, counterfeiting or other illicit activity. 
 
Agreements and Treaties. Mongolia is a party to the 1988 UN Drug 
Convention, the 1961 UN Single Convention as amended by its 1972 
Protocol, and the 1971 UN Convention on Psychotropic Substances. 
Mongolia also is a party to the UN Convention against Corruption. 
The government of Mongolia attempts to meet the goals and objectives 
of international initiatives on drugs. The United States and 
Mongolia have in force a customs mutual legal assistance agreement. 
 
IV. U.S. Policy Initiatives and Programs 
 
U.S. government assistance has included international visitor 
programs on transnational crime and counternarcotics, as well as 
some training by U.S. law enforcement agencies. 
End text 
 
Minton