FRC TO REGULATE REAL ESTATE BROKERS
On 18 October, 2019 - at a meeting of the International Financial Action Task Force (FATF) - Mongolia was included in the list of countries with ‘strategic deficiencies’ in anti-money laundering and combating the financing terrorism (AML/CFT). Since then, the State Great Khural (Parliament) has made amendments to the Law on the Legal Status of the Financial Regulatory Commission and the Law on Licensing of Business Activities; approved on 17 January, 2020. Now, the FRC is required by law to regulate and supervise real estate brokerage activities, as a service provider in relation to licensed activities.
In accordance with the requirements and principles of comprehensive measures on (AML/CFT), Financial Regulatory Commission’s Resolution No. 120 of 2020 has adopted the Regulations on licenses, permits, authorization and registration procedure of real estate brokerage organizations.
At the Commission’s 8th meeting of 2020 - 22 April - a decision was taken to grant licenses to the first eight legal entities that applied for operating licenses and fulfilled legal requirements. On 1 May 2020, a license certificate was issued by Chairman of the Financial Regulatory Commission D. Bayarsikhan and other officials.
During the awarding of the licenses, D. Bayarsaikhan said:
‘There is a need to take comprehensive actions on anti-money laundering and combating the financing terrorism. I am delighted that, under this framework the related professionals, legal entities and citizens, are all supporting and collaborating within the Government’s work. The Commission has begun drafting legislation - in two newly regulated sectors - to determine the development trends of the sector and to create a legal environment. I would like to invite all those who have served in this area for a long time and acquired a great deal of expertise to take an active part in the drafting and public discussion of the law, and to assist in the submission of business proposals’
Note: If you are a legal entity applying for a license to operate a real estate brokerage organization, please contact the FRC’s website (www.frc.mn) or call +976 262604 or +976 262607 for advice and information on the terms and conditions set forth in the regulations.