A. BACKGROUND  

The Government of Mongolia has received a credit from the International Development Association in scope of the Strengthening Fiscal and Financial Stability Project (SFFSP), and it intends to improve fiscal policy and sustainability in a mineral-based economy, protect the poor and vulnerable, and restore confidence in the financial sector. The Ministry of Finance (MOF) will be responsible for the implementation of the project, including overall coordination, results monitoring.

The banking sector in Mongolia has about 95 percent of total financial system assets, making it core economic sector at same time potential vulnerability of the country.  Therefore, strong and stable banking sector and effective regulatory framework comprising coherent and consistent legislations up to the international best practices is main priority of the country’s development goal which is highlighted in “Vision 2050”, Mongolia’s long term development program enacted by the Parliament in 2020.

The Legal Department (LD) of the Bank of Mongolia (BOM) is assisting to create legal environment for effective, sustainable and smooth operations of financial sector, especially in protecting the rights of bank customers and depositors as well as developing the banking legislation.  In 2017, the BOM initiated the “Legal Reform of the Banking Sector Program” to transpose international best practices and standards on central bank governance, financial consumer protection and banking regulation in Mongolia. Within the scope of this program, the BOM has played major role in creating legislations and has taken steps including formulation and submission of several draft laws, most of which have ultimately been approved by the Parliament.

Therefore, an initial goal in near term is to picture and analyze overall legal framework through review and assessment of relevant laws which are mostly outdated to identify possible conflicts, gaps and overlaps and possible ways to address such issues.  

B. OBJECTIVE OF THE ASSIGNMENT 

The main objective of this assignment is to conduct comprehensive research on the current banking and financial sector related legislations to identify any conflict, gap and overlap among the national legislations as well as international treaty or convention to which Mongolia is a party, and to suggest remedial actions including draft law form. 

C. SCOPE OF THE WORK 

Key responsibilities of National Consultant will include the following matters, but not limited to: 

1.    To review and analyze all banking and financial sector related laws in area of public and private laws and identify possible conflict, gap, and overlap. A national consultant should review and examine at least the following legislations:

1.1.  Law on Central bank, 

1.2.  Banking law,

1.3.  Credit information law,

1.4.  Law on deposits, loans and payment transactions of bank and authorized legal entities, 

1.5.  Law on currency settlement,

1.6.  Law on national payment system,

1.7.  Law on combating money laundering and financing of terrorism, 

1.8.  Law on deposit insurance,

1.9.  Law on treasury,

1.10. Law on promissory notes, 

1.11. Law on ensuring banking sector stability,

1.12. Law on securities market,

1.13. Law on legal status of Financial regulatory commission, 

1.14. Law on company,

1.15. Treaty or convention to which a Mongolia is a party, and

1.16. Civil code.

2. Prepare Research report in form describing the findings of analysis and the proposed legislative amendments for submission to the BOM. The paper should address at least the following questions with concrete background data and theoretical basis:

• Is there any conflict or gap in banking and financial sector legislation resulting, contradiction, overlaps or vagueness in application? 

• Is there any vagueness or gap in legislation due to lack of regulations or secondary legislative acts to be issued by government in enforcing such laws?  

• Is there any conflict or contradiction among provisions of laws due to grammar errors and miswording or misinterpretation? 

• Is there any overlap of provisions or overlapped jurisdiction among administrative agencies causing inefficiency or burden? 

3. Prepare and present the draft legislation for the necessary changes suggested in the Research report. 

• The Draft legislation will include a set of recommended amendments to the existing legislation and consist of a package of documents required by the Law on Legislation of Mongolia.  

• The Research report shall also include minimum international standards as well as good international practice based on other countries’ experiences dealing with such issue.

• Conduct meetings with the BOM to explain the Research paper, draft legislation and its basis, answering all questions that may be raised, and revise the Draft legislation as necessary following such meetings and based on the comments from the BOM.

4. Prepare a Final detailed report summarizing the progress of the project for the BOM and any recommendations to avoid creating conflict, gap and overlap in legislations in the future.

D. DELIVERABLES

The Consultant shall submit the following DELIVERABLES to the BOM:

Deliverable                                 Timing

Deliverable 1 – Research paper: To be delivered within 3 months of project start 

Deliverable 2 – Draft legislation:  To be delivered within 4 months of project start 

Deliverable 3 – Final report:      To be delivered within 5 months of project start

E. CONSULTANT’S QUALIFICATIONS

To be considered eligible candidates should have all the eligibility criteria listed below:

Education: A suitable candidate should have a post-graduate degree in Law. Double major in Law and Economics is an advantage. 

Experience: A candidate should have at least 10 years of professional experience. Specialized knowledge of and experience in financial sector highlighted in academic or professional publications is strongly preferred. 

Language skills:  Professional English and Mongolian in writing and speaking.

Other skills:  Excellent interpersonal skills with the ability to function effectively and collaboratively in a team environment; proficiency in PC based applications including not limited to data management analysis software, and have excellent research and navigation skills. 

Consultant will be selected in accordance with the Individual Consultant Selection Method set out in the Procurement Regulations: The following is the link to the World Bank’s website: https://policies.worldbank.org/sites/ppf3/PPFDocuments/Forms/DispPage.aspx?docid=083b3f94-a932-4395-a410-834f8bc14f8c

G. CONTRACT DURATION 

The consultant work is expected to commence in April 2021 and the total duration of the assignment is 5 months. If any task is not completed and approved by the Client within the agreed-upon timeline, consultants should complete the tasks without any additional cost. 

Payments will be released upon satisfactory completion of all deliverables according to the following schedule:

 Deliverables 1: 30% of total contract amount

 Deliverables 2: 30% of total contract amount

 Deliverables 3: 40% of total contract amount

If you possess the above qualifications, please submit following documents via email to procurement@sffs.mn:

    1. Cover letter indicating why she/he considers her/himself suitable for the position.

    2. Detailed CV highlighting relevant skills/experience.

    3. Copy of diplomas or certificates; and,

    4. Two (2) reference letters from previous last two employers no later than 17:00, April 05, 2021.

The submitted documents will not be returned to the applicants. Please be noted that incomplete applications would not be considered for evaluation. Only selected candidate will be contacted.

Address for submission of Expression of Interest: Attention to Ms. Ariunaa G, Procurement Specialist, Strengthening Fiscal and Financial Stability Project, Address: Room #204, Negdsen undestnii 8/2, 4th khoroo, Chingeltei District, Ulaanbaatar, Mongolia. Tel: 70120582 or via email to: procurement@sffs.mn

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