On 22 March 2019, the Parliament of Mongolia approved the revised tax laws and other amendments to the relevant legislation in response to the recommendations of the Financial Action Task Force. Among the approved legislation, the Law of Mongolia on Implementation of the General Taxation Law and an amendment to the Law of Mongolia on State Registration of Legal Entities set out general provisions with respect to identifying and registering beneficial owners of legal entities. Pursuant to Article 9 of the Law of Mongolia on Implementation of the General Taxation Law, all legal entities incorporated prior to 1 January 2020 must register their beneficial ownership information with the Legal Entities Registration Office (“LERO”) by 31 December 2020. If a legal entity fails to register its beneficial ownership details with LERO within such date, it is subject to a penalty equal to MNT 500,000 (approx. USD 175).

In this note, we set out a brief overview of the legal framework and the registration process for the purpose of providing a general understanding of the topic.