Title: Financial Regulatory Commission of Mongolia: Shaping Mongolia’s Financial Markets with Transparency and Consumer Protection
The Financial Regulatory Commission (FRC) of Mongolia is a critical player in maintaining the stability and integrity of the country’s financial markets. As the parliamentary authority for regulation and supervision of non-bank financial markets, the FRC oversees various sectors, including insurance and securities markets, real estate agents, precious metals and stones dealers, and the microfinance sector.
Background
- Established in 2006
- Mandate: maintain financial market stability, ensure fair competition, and secure consumer protection
- Vision: creating diversified, sustainable, and inclusive financial markets
Key Functions
The FRC’s primary functions include:
- Regulation: monitoring financial market activities, enforcing legislation
- Supervision: ongoing monitoring of authorized firms and individuals
- Teamwork: collaboration with international organizations
- Proficiency: maintaining high standards and expertise
- Independence: operating free from political interference
Scope of Regulation
The FRC regulates the following non-bank financial institutions:
- Insurance Companies and Intermediaries
- Securities Firms
- Saving and Credit Cooperatives (SCCs)
- Payment Guarantee
- Factoring Service
- Custodian Banks
- Investment Consultants and Management
- Underwriters
- Reinsurance
- Brokers and Dealers
- Stock Exchanges
- Loan Services
- Payment and Transfer Services
- Online Payment and Transfer Services
- General Insurance
- Insurance Loss Adjuster
- Insurance Intermediaries
- Commodity Exchange
- SCCs
- Foreign Exchange
- Investment and Financial Consultancy
- Microfinance Securities
Regulatory Role
The Commission’s regulatory function includes:
- Enforcing legislation
- Licensing and registration
- Regulating and supervising financial markets
- Implementing and enforcing legislation
Supervisory Approach
The FRC adopts a risk-based approach to its supervisory duties, focusing on areas and institutions posing the greatest risk to consumers and the financial markets. The approach is in line with international best practices.
International Cooperation
The FRC plays an active role in international organizations, facilitating the sharing of best practices and expertise:
- International Organization of Securities Commissions (IOSCO)
- International Association of Insurance Supervisors (IAIS)
- Alliance for Financial Inclusion (AFI)
- International Credit Union Regulators’ Network (ICURN)
Anti-Money Laundering and Counter-Terrorist Financing
According to Mongolian legislation, the FRC is also responsible for combating money laundering and terrorist financing within the financial sector. The Commission actively supervises financial service providers, ensuring adherence to regulatory requirements and the Anti Money Laundering and Combating the Financing of Terrorism law.
Contact Information
For more information about the FRC, please visit the official website.