Legal Summary on Electronic Money Regulation in Mongolia
Background: New Law on National Payment System, dated 31 May 2017, shall become effective from 1 January 2018. The importance of the new law is an integrated payment system launch between the Central Bank, commercial banks, legal entities, other financial institutions and individual customers. As result of the law enactment, the Central Bank will be able to control all payment transactions of all participants of Mongolia financial market. It will help the Central bank to have better picture of the economy through controlling all payment systems of Mongolia, protecting rights of customers, ensuring competitive market and granting new licenses for financial services, including services of a system operator, payment service provider, payment representative, outsourcing, electronic money service and issue of e-money, etc.
Within the framework of e-money service and its performance, the President of Mongol Bank (the Central bank) passed new Resolution No A-45 on Electronic Money, dated 13 February 2018 with its Attachment - Procedure on E-money, which will be effective from 1 June 2018.
Scope of the Resolution and its attachment: The Resolution regulates the issue of e-money, conversion of e-money into monetary assets, use of e-money in payment and transactions, and defines criteria for participants in these activities in the territory of Mongolia.
A transaction involving e-money shall be committed using the national currency of Mongolia - Tugrugs.
The e-money service shall have a name, which will be distinguished from others.
Volodya Bolormaa, Partner