The Bank of Mongolia: Law on Non-Bank Financial Institutions

This is the directive issued by The Bank of Mongolia. The purpose of this Law is to establish legal foundations for non-bank financial activities to regulate relations concerning:

• Management;
• Organization licensing ;
• Suspension;
• Revocation of licenses.

The document is divided into six chapters, which highlight the following, applicable to entities engaging in non-bank financial activities:

• General provisions, specifying mainly:
  • Purpose of the Law;
  • Scope of the Law.
• Engaging in non-bank financial activities:
  • Conducting the activity;
  • Documents to receive a license to engage in activities;
  • Charter for engaging.
• Prohibitions and requirements for entities;
• Provisions for capital and financial statements;
• The supervisory authority - The Bank of Mongolia;
• The liabilities imposed in case of violation of legislation.