Legal Alert: Relevant procedures for virtual asset service providers have been approved
In October 2019, Mongolia was placed on the list (by the International Organization for Financial Action Task Force (FATF)) of countries having strategic deficiencies in their regimes to combat money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. 1 year later in October 2020, it was successfully removed from the list.
Corporate governance code has been updated
In order to develop corporate governance practice in Mongolia, the Financial Regulatory Commission /the “FRC”/ approved the Corporate Governance Code (hereinafter “the Code”) in 2007 for the first time and revised it later in 2014
One of the alternative ways to attract investment and expand one’s business is the public offering and sales of securities. As of 2021, there are 314 joint-stock companies (hereinafter the “JSC”) registered in Mongolia, and securities worth MNT 1.4 trillion (app USD 452.09 million) were traded on the market which is 21.6 times higher from 2020 and increased results by 64.3 percent from 2017.
Legal Alert: Law on Cyber security
On June 30, 2021, the Government of Mongolia submitted a draft Law on Cyber security and supplementary draft laws to the State Great Khural(or the Parliament). On December 17, 2021 at the plenary session, the State Great Khural approved the draft Law on Cyber security. The law has adopted the first time in Mongolia and has been discussed and developed 7 times over the past decade.
Legal alert: New Law on protection of personal data in Mongolia
The Parliament of Mongolia (State Great Khural) passed a new Law on Protection of Personal Data on December 17, 2021. The law will become effective from May 1, 2022. The Law on Personal Secrets which was adopted in 1995 provides very general provisions that individuals were to determine and protect their secrets themselves. Compared to this law, the new law is featured that it provides more comprehensive regulation on the Protection of Personal data.
"Procedure for determining the average salary" and "for granting annual leave and calculating annual leave pay"
Based on the Article 24.2 of the Law on Government of Mongolia and article 103.1.1 of the Labor Law (revised version), the “Procedure for determining the average salary” was approved and entered into legal force on January 1, 2022.
Draft law on Licensing
A working group has been established by Resolution No.38 by the Chairman of the State Great Khural (the Parliament) dated 2021 with responsibilities of preparing the draft law on Licensing which was submitted by the Government, approving the license list and other draft laws submitted together with it for discussion at the plenary session, and drafting proposals.
Tremendous mineral reserves, agricultural endowments, and proximity to Asia’s vast markets make Mongolia an attractive destination for medium to long-term foreign direct investment (FDI). The Gross Domestic Product (GDP) in Mongolia is worth 10.4 billion US dollars as of September 2021 according to the national statistics of Mongolia. The GDP value of Mongolia represents 0.01 percent of the world economy.
People in the business world strive to be successful, profitable and most importantly not to go bankrupt. Nowadays, it is better idea to open a franchise rather than starting a new business. Franchising is a way of organizing a business, in which a business model has been already tested and proven to be effective in practice
The Law on Workforce migration was adopted to determine the relationship, management and organization of workforce migration from Mongolia to foreign country and from foreign country to Mongolia on basis of national labor market data, in a unified and comprehensive manner in order to protect human rights and legitimate interests. The implementation of labor migration policies and regulations will have positive social and economic consequences, including increased employment, sustainable population growth, family stability and more specialized and skilled human resources.