8/18/2021
Rapidly evolving technological advancements have drastically shifted the notion of financial services and financial markets. As a result, newly emerged financial products and related services such as blockchain, bitcoin, cryptocurrency, and virtual assets enable a global transfer of value using innovation and technology.
The 15th recommendation of the 40 recommendations provided by the Financial Action Task Force (FATF) stipulates the countries to develop a framework that evaluates risks of and combat ML/FT activities conducted through new technologies, more specifically virtual assets.
In compliance with this recommendation, by the Bank of Mongolia (BOM) Governor’s decree A-23 from January 27, 2020, a working group was formed with the goal of conducting a “Gap analysis on regulating financial services related to virtual assets, developing a proposal for improving the legal framework and amending the respective legal acts per international standards and recommendations”.
The group consists of BOM and the Financial Information Unit (FIU) staff who collaborated with an international consultant specialized in-laws on virtual assets and hired with the financial support of the SFFS project sponsored by the World Bank.
As a result, the working group has developed a draft law on virtual asset services providers (VASP) and draft amendments to the related laws in compliance with the Law on laws and international best practices and standards.
The FIU presented the drafts to the 15 members of the Cooperation Council – the main body to conduct AML/CFT activities – and for the public discussion. In addition, members of the Government of Mongolia, corresponding government agencies, and 22 non-government organizations provided their inputs in the draft legislation.
A passing of the bill will not only establish a legal framework to regulate virtual assets but also comply with the FATF recommendations, attract foreign investment, lower costs of financial services by diversifying the range of possible financial products, legal protection of ownership, and reduce risk of ML/FT activities.
Mr. Kh.Nyambaatar, Member of the Parliament and the Minister of Justice and Home Affairs, introduced the draft law on VASP to the Parliament in May 2021, and the Parliament discussed it on June 17, 2021. The majority of the parliament members voted for discussing the bill and ordered the Standing Committee on Innovation, cyber policy to prepare the bill for a preliminary discussion.
On August 12, 2021, the FIU organized the meeting of a working group formed by decree 10 of the Standing Committee from July 1, 2021, to prepare the VASP law and amendments to the related laws for the parliamentary discussion. The innovation and cyber policy standing committee members N.Uchral, Kh.Bulgantuya, B.Enkhbayar, and G.Amartuvshin joined the meeting with the management and staff of the BOM, FRC, FIU, Ministry of Justice, and Home Affairs.
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WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT
4/3/2023
Concerning the Strengthening Governance in Mongolia project, which was completed on February 28, 2023, the World Bank working group to develop the project completion report had an official meeting with Project Implementation Unit (PIU) and implementing organizations on March 30, 2023. The purpose of the working group meeting is to review the implementation of the project, the results achieved, and the fulfillment of the project indicators. |
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PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION
3/23/2023
Performance based financing (PBF) links funds or payments to service providers to results achieved and gives them considerable autonomy in the use of these funds. The strategic approach is appealing to many individuals and organizations as it motivates them to perform better and channels resources directly to the frontlines. This in turn fosters greater accountability. Using this approach has been popular in different sectors with some promising results emerging. |
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AN INTEGRATED SYSTEM FOR RESULTS-BASED MEDIUM-TERM BUDGET PLANNING: IN ACHIEVING THE GOALS OF IMPROVING BUDGET PLANNING, BUDGET EFFICIENCY AND PROGRAM OUTCOME.
3/7/2023
Under the scope of improving public financial management, Mongolia is aiming to introduce result-oriented medium-term budgeting, transitioning from the traditional input-based budgeting. This goal is aligned with development policy of Mongolia to shift from medium-term fiscal framework (MTFF) to medium-term expenditure framework (MTEF). |
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The MOF is entering the new phase of PFM Reform Action Plan
2/28/2023
Within the framework of the European Union financed, World Bank managed “Strengthening Governance in Mongolia” project, the Ministry of Finance, in compliance with the “Sustainable Development Vision 2030” and the “Action Program of the Government of Mongolia for 2016-2020”, has approved and implemented the Public Financial Management (PFM) Reform Strategy and the Action Plan for 2018-2022. The overarching objective of the strategy was to improve governance and achieve effective resource allocation and efficient public service delivery. The implementation status of the PFM Action Plan is indicated as “Certain results have been achieved” at the rate of 85 percent. |
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LAUNCHED BETA VERSION OF THE REDEVELOPED GLASS ACCOUNT PORTAL
1/20/2023
The Ministry of Finance Mongolia has developed and successfully launched the new version of the Glass Account Portal in 2023 within the framework of the Strengthening Governance in Mongolia Project jointly implemented by the EU and the World bank. |
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New systems and services are added in the Intermediate service platform for fiscal and financial systems
1/11/2023
The Ministry of Finance Mongolia has developed and successfully launched the Intermediate Service Platform (ISP) in 2022 within the framework of the Strengthening Governance in Mongolia Project. The main purpose of the system is to provide a possibility of information /web services/ exchange between the independent systems of the Ministry of Finance and other organizations in a easy and flexible way. In addition, it is solving the issues of overlapping connections and development between many information systems and organizations, transferring them to a unified standard, making it has no complexity, and more secure. |
