REAL ESTATE BROKERAGE ACTIVITIES AS NON-FINANCIAL BUSINESS AND PROFESSIONAL SERVICE PROVIDER SHALL BE CONSIDERED AS LICENSED ACTIVITY in accordance with framework of improving policies, strategies and regulations to combat money laundering and terrorist financing. Accordingly, Financial Regulatory Commission (the FRC) of Mongolia approved "Procedure for Licensing, Permitting, Authorization and Registration of a real estate brokerage company" (the Procedure) by the resolution No 120, dating 11, March 2020.
The license for conducting real estate brokerage activity shall be issued for a permanent period. The following activities shall be conducted within the license:
- Brokerage of sale, purchase and transfer of real estate and the relevant claims;
- Brokerage of leasing and renting of real estate and the relevant claims.
In addition to these activities, the company that has the license may conduct following activities upon registering at the FRC:
- Real estate management service;
- Sales of real estate upon purchasing and repairing;
- Other services considered to be real estate brokerage activity by the FRC.
I. An applicant shall meet the following requirements to obtain a license for real estate brokerage activity:
- The share capital must be at least 15,000,000 (fifteen million) MNT;
- The share capital must be funded by monetary asset that is generated from lawful-sourceof-income. The share capital must not be financed by credit;
- To have at least one broker experienced as a real estate brokerage agent for at least 2 years and responsible for brokerage of sale, purchase and transfer of real estate and the relevant claims;
- To have more than one agent that is responsible for brokerage of sale, purchase and transfer of real estate and the relevant claims;
- The broker and the agent shall have obtained a certification that shows their participation in a training organized under a program approved by the FRC and taken the relevant examination (A certification of broker and agent that shows the participation in relevant to real estate brokerage training within 1, June 2020 shall be accepted);
- Governing body, shareholder and
broker of the company shall meet the following criteria of
- To have appropriate education and
- To have completed higher or secondary education;
- To have completed a training approved by the FRC and obtained a certification.
- Not to have involved in crime;
- No criminal charges or penalties in connection with crimes and violations of money laundering, terrorism financing, bribery, corruption or fraud under the Criminal Code;
- Not a suspect of money laundering, terrorism financing or corruption under the Criminal Code at the stage of lawsuit and investigation.
- To have an ethical reputation;
- Not have been imposed of disciplinary sanction of dismissal due to one's wrongful actions and violation of industry code of ethics within the last one year;
- Not to be a convict of complaint in connection with financial and non-financial services and activities;
- Not to have violated the industry code of ethics within the last one year;
- Not to have violated any laws, regulations, business ethics and codes in Mongolia or abroad, or not to have supported one to do so;
- To be available to conform with any requirements under any regulations, or professional and ethical standards of Mongolia or abroad.
- To be free from conflict of interest;
- Not to have contradicted with article 20, 21, and 22 of the Law on Regulation of Public and Private Interests in Public Service and Prevention of Conflict of Interest;
- Not to have contradicted with a special law regulating activities related to financial services specified in article 3.1 of the Law on the Legal Status of the Financial Regulatory Commission.
- Others provided by law.
- To have appropriate education and work experience;
- To have appointed a person to supervise the compliance of the Law on Combating of Money Laundering and Terrorism Financing;
- To have a workplace, facility, hardware, and software to conduct real estate brokerage activities;
- To have adopted an internal procedure for real estate brokerage activities, ethic code of employees, and adopted internal control and risk management program stipulated in the Law on Combating of Money Laundering and Terrorism Financing;
- To have adopted business plan.
For foreign invested real estate brokerage company, following shall be required in addition to the requirements above and the requirements stipulated in the Law of Mongolia on Investment:
- Investor shall have obtained information, statement, and reference about his/her source of its monetary investment and activities from relevant State Authority or any Law Enforcement Agency, and Banking and Financial Institutions of the country of origin;
- Investor shall have delivered information on the amount and origin of the monetary investment to Financial Information Unit of Mongolia.
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