Includes special features of this country’s banking system and rules/laws that might impact U.S. business.

Mongolia’s banking system has become more efficient and reliable, although supervision lags and some banks do not measure up to international standards.  Prior to 1991, no western-style commercial or central banking system existed in Mongolia.  The State Bank was the only bank in Mongolia.  In October 1990, the Mongolian Government, in line with free market economic reforms, dissolved the State Bank.  In 1991, Mongolia enacted a new banking law to create a western-style banking system.  The law re-organized the banking system into a two-tier structure.  The Bank of Mongolia, or Mongol Bank, acts as the central bank, implementing monetary policy.  Other private and public banks provide commercial services.
Mongolia’s four largest commercial banks are:

A foreign company or organization (such as a joint venture or wholly owned firm) may open an account by presenting the following information to their bank:
  1. Company registration from the General Authority for Intellectual Property and State Registration (GAIPSR).  
  2. Authorization from the Ministry of Finance.
  3. A letter requesting the account.

A private foreign individual may open an account upon written request.  Banks usually have forms that serve as written requests.  A passport is required.

Most of Mongolia’s banks make international money transfers.  The four largest banks maintain correspondent relations with several foreign banks and maintain accounts in major world currencies with several of them.  Clients may transfer money into and out of their domestic accounts, subject to domestic reporting requirements.  There are no set limits on the amount that may be withdrawn from an account.  The bank charges a small commission on cash withdrawals in hard currency.  There is no commission on cash withdrawals in tugriks at the daily buying rate.  The bank charges a commission on all transfers of hard currency within Mongolia and to banks abroad.  International transfers, including interest income and profits, may be subject to 20 percent withholding tax by the bank on behalf of the Mongolian Tax Authority.

Banks do not cash personal checks.

Major hotels accept American Express, Visa, Master Card, and JCB credit cards.  Major stores, restaurants, and travel agencies also accept credit cards.  Most banks offer cash advances on major credit and charge cards.  Merchants can add a three to four percent surcharge on both credit and charge card purchases.  Most banks maintain ATMs that allow cash withdrawals through international networks.  

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