Mongolia : Developing Financial Technology Legal and Regulatory Frameworks for Mongolia
The knowledge and support technical assistance (TA) will help the Government of Mongolia assess the legal and regulatory frameworks and develop the regulatory and supervisory capacity for financial technology (fintech). The TA will support (i) assessing legal and regulatory frameworks for fintech and providing recommendations for improvements, (ii) developing a fintech regulatory roadmap, and (iii)building the regulatory and supervisory fintech capacity of stakeholders.
Project Details
-
Project Officer
Shrawani, Yashna
Office of the General Counsel
Request for information -
Country/Economy
Mongolia -
Sector
- Finance
| Project Name | Developing Financial Technology Legal and Regulatory Frameworks for Mongolia | ||||
| Project Number | 55234-001 | ||||
| Country / Economy | Mongolia |
||||
| Project Status | Active | ||||
| Project Type / Modality of Assistance | Technical Assistance |
||||
| Source of Funding / Amount |
|
||||
| Operational Priorities | OP2: Accelerating progress in gender equality OP6: Strengthening governance and institutional capacity |
||||
| Sector / Subsector |
Finance / Finance sector development Information and communication technology / ICT strategy and policy, and capacity development |
||||
| Gender | Some gender elements | ||||
| Description | The knowledge and support technical assistance (TA) will help the Government of Mongolia assess the legal and regulatory frameworks and develop the regulatory and supervisory capacity for financial technology (fintech). The TA will support (i) assessing legal and regulatory frameworks for fintech and providing recommendations for improvements, (ii) developing a fintech regulatory roadmap, and (iii)building the regulatory and supervisory fintech capacity of stakeholders. The TA is consistent with the operational priorities of the Asian Development Bank (ADB) under Strategy 2030, particularly operational priority on strengthening governance and institutional capacity by improving the regulatory framework, the capacity of regulators and improving interagency coordination and OP2 on accelerating progress in gender equality by increasing overall access to finance and contributing to responsible financial services reaching more micro, small, and medium-sized enterprises (MSMEs), which are predominantly owned by women. The TA is also aligned with Sustainable Development Goal 8 on promoting sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all, and Sustainable Development Goal 9 on building resilient infrastructure, promoting inclusive and sustainable industrialization and foster innovation. This TA is included in Mongolia's indicative country pipeline and monitoring report, 2022-2024. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Financial innovation in the form of new delivery channels, products, and service providers has helped expand access to finance and thereby increased the bankable and banked population across the developing world. The importance of financial inclusion and development of fintech increased during the coronavirus disease (COVID-19) pandemic. Mongolia has gained significantly from fintech advancements, with account penetration across the population driven by expansion of mobile accounts. The rapid growth has raised novel and complex regulatory challenges, with implications for financial stability, consumer borrowing and credit protection practices, cybersecurity, money laundering risks, data protection, and data privacy. The priority of fintech for regulators has remained high or increased particularly in emerging markets and developing economies. The sector is innovating rapidly, which requires an agile, risk-aware and functional regulatory approach. Despite several initiatives-including the promulgation of the e-signature law, the regulatory sandbox regulation, and the law on virtual assets and virtual assets providers-a lack of regulatory and supervisory capacity has hampered Mongolia's regulators from fully realizing the opportunities presented by fintech. | ||||
| Impact | Digital financial services to stimulate economic growth developed and finance sector reliability enhanced |
||||
| Project Outcome | |
|---|---|
| Description of Outcome | Holistic legal and regulatory frameworks for fintech and fintech-reliant NBFIs developed |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Legislative and regulatory frameworks for fintech assessed Legal and regulatory frameworks for fintech based NBFIs developed Capacity of regulators and industry associations strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | I. International Financial Advisory Services A. International Experts - International Financial Services and Policy Expert/Team Leader, International Legal Expert, International Fintech Expert/Deputy Team Leader, and RegTech and SupTech Expert B. National Expert - National Legal Expert II. Project Coordinator |
| Procurement | None foreseen |
| Responsible ADB Officer | Shrawani, Yashna |
| Responsible ADB Department | Office of the General Counsel |
| Responsible ADB Division | Office of the General Counsel |
| Executing Agencies |
Asian Development Bank Financial Regulatory Commission of Mongolia |
| Timetable | |
|---|---|
| Concept Clearance | 29 Nov 2021 |
| Fact Finding | 04 Aug 2022 to 04 Aug 2022 |
| MRM | - |
| Approval | 14 Nov 2022 |
| Last Review Mission | - |
| Last PDS Update | 22 Nov 2022 |
TA 6991-MON
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 14 Nov 2022 | 15 Dec 2022 | 15 Dec 2022 | 30 Sep 2025 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 400,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 400,000.00 | 06 Feb 2023 | 0.00 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
| Title | Document Type | Document Date |
|---|---|---|
| Developing Financial Technology Legal and Regulatory Frameworks for Mongolia: Technical Assistance Report | Technical Assistance Reports | Nov 2022 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Project Coordinator | Individual - Consulting | Closed | ||
| Financial Advisory Services Firm | Firm - Consulting | Closed |
Contracts Awarded
Procurement Plan
None currently available.