Financial Crime World

Mongolia’s Financial Regulatory Commission: Safeguarding Stability and Integrity in the Non-Bank Sector

The Financial Regulatory Commission (FRC) of Mongolia is a vital regulatory body responsible for the oversight and management of Mongolia’s non-bank financial sector. Established in 2006, the FRC ensures the stability and integrity of the country’s financial markets.

About the FRC

  • Supervised by Mongolian parliament
  • Accountable for monitoring and regulating non-bank institutions
  • Including insurance companies, securities firms, and savings and credit cooperatives (SCCs)
  • Mission: protect consumers, uphold the law, and ensure sound financial management

Core Functions

The FRC’s primary functions include:

  1. Regulation:

    • Monitoring financial institution activities
    • Implementing prudential standards
    • Ensuring sound financial environment

  2. Supervision:

    • On-site and off-site inspections
    • License issuance and review
    • Enforcement actions against non-compliant entities

Values

The FRC focuses on:

  • Consumer protection
  • Professionalism
  • Initiative
  • Independence
  • Accountability
  • Teamwork
  • Integrity

Major Regulated Areas

Financial markets overseen by the FRC:

  • Real estate brokerage companies
  • Brokers and dealers
  • Investment companies
  • Savings and credit cooperatives
  • Insurance firms
  • Insurance intermediaries
  • Financial and investment consultancy services
  • VASPs (Virtual Asset Service Providers)

Recent Statistics (Q4 2022)

Number of regulated entities:

  • Real Estate Brokerage Companies: 305
  • Securities Firms: 40
  • Insurance Companies: 15 (life) + 2 (non-life)
  • Savings and Credit Cooperatives: 196
  • Insurance Intermediaries: 25

Importance of Implementation and Enforcement

The FRC’s role in implementing and enforcing legislation:

  • Conducting on-site and off-site inspections
  • Issuing sanctions for non-compliance
  • Collaborating with other regulatory bodies and law enforcement agencies

Conclusion

The FRC is an indispensable component of Mongolia’s financial system, ensuring the stability and integrity of its non-bank financial sector. By implementing regulations, supervising institutions, and prioritizing consumer protection and financial well-being, the FRC continues to protect investors, consumers, and the Mongolian financial system as a whole.