(2022.10.10-ны өдрийн орчуулга)                     Unofficial translation

LAW OF MONGOLIA

July 9, 2009                                                                                              Ulaanbaatar city

ON CONDUCTING SETTLEMENT IN NATIONAL CURRENCY

CHAPTER ONE

GENERAL PROVISION

Article 1.Purpose of the law

1.1.The purpose of this law is to regulate relations concerning conduct of settlement and expression of price of goods, works, services in national currency in territory of Mongolia.

Article 2.Legislation on conduct of settlement in national currency

2.1.The legislation on conducting settlement in national currency comprises of the Constitution of Mongolia, Law on Central bank /Mongolbank/, Currency settlement law, this law and other legislative acts issued in conformity with them.

2.2.If an international treaty to which Mongolia is a party states otherwise than this law, the provisions of the international treaty shall prevail.

Article 3.Definitions of terms

3.1.Terms used in this law shall have the following meanings:

3.1.1."territory of Mongolia" means territory of Mongolia excluding territories of economic free-zone, foreign diplomatic missions and consulates in Mongolia;

3.1.2."national currency" means togrog, lawful means of payment issued by Mongolbank into circulation, "Togrog" in English, and abbreviated as "MNT";

3.1.3."official exchange rate of Mongolbank" means the rate announced by Mongolbank calculated on the basis of amount and rate of cashless foreign exchange commerce between banks, and between banks and organizations, citizens;

3.1.4."foreign currencies" means foreign currencies, foreign banknotes;

3.1.5."foreign currencies" means currency of foreign countries, which is a legal instrument of payment issued by the competent authorities of countries other than Mongolia;

3.1.6."foreign banknotes" means securities and other means of payment expressed in the currency of a foreign country used for the payment of interstate trade, economic and financial relations;

3.1.7."unit of settlement" means a price offer expressed in change of price of goods, works, services in connection with togrog currency ratio versus foreign currencies.

CHAPTER TWO

SETTLEMENTS TO BE CONDUCTED IN NATIONAL CURRENCY

Article 4.Consumption of national currency

4.1.Prices of goods, works and services shall be expressed only in national currency, and settlement shall be conducted in that currency in territory of Mongolia, and except as specified in section 4.4 of this law, it is prohibited to set prices, carry out settlement, or run advertisement in foreign currencies or settlement unit without an official permission of Mongolbank.

4.2.Any settlement to be paid to state and local budgets and/or financed by state budget shall be conducted only in national currency, and these settlements shall not be made in foreign currencies.

4.3.Determining amount of fees, deductions, liabilities in legislation of Mongolia shall be expressed only in togrog.

4.4.Monetary savings, loans, any services equal to those, and or agreements concluded in relation with financial derivative instruments, and obligations assumed under such treaties of banks, non-banking financial organizations may be expressed in foreign currencies, and execution maybe provided in foreign currencies.

CHAPTER THREE

MONITORING IMPLEMENTATION OF THE LAW

Article 5.Organization in charge of monitoring implementation of the law

5.1.Banks are monitored by the auditor of Mongolbank, legal entities and citizens other than banks are monitored by the auditor of the Financial Regulation Committee.

5.2.Mongolbank and the state central administrative body in charge of financial matters may conduct joint inspections on implementation of this law according to the decision of Financial Regulatory Committee.

Article 6.Liability for violators

6.1.Unless an official who has breached the legislation is subject to criminal liability, he/she shall be held liable in accordance with the Law on Public Service.

6.2.An individual, legal entity who has breached this law is subject to the liability in accordance with Criminal law or Law on Violations.

/This article was revised according to the law as of December 4, 2015/

Article 7.Entry into force of the law

This law shall enter into force from the date of it is passed.

CHAIRMAN, THE STATE GREAT KHURAL OF MONGOLIA D.DEMBEREL