This document summarizes Mongolia's legal framework for anti-corruption, including relevant laws, gaps in the laws, and perceptions of corruption. It outlines several key anti-corruption laws that define corruption and conflicts of interest, and establish criminal penalties. However, it notes there are still legal gaps around issues like asset confiscation, donations, and regulating foreign bribery and political finance. Surveys also find that many Mongolians perceive significant corruption in the public and private sectors and think existing laws are not effective at combating it. The document recommends organizations establish compliance programs to manage corruption risks.

1. ANTI-CORRUPTION
LEGAL FRAMEWORK OF MONGOLIA
(current state, gaps, and implementation)
Battuya Jalbasuren, Chinggis Law LLP

2. SCOPE
•Major laws
•Specifics of relevant laws
•Legal gaps
•Implementation/Perceptions

3. RELEVANT LAWS AND POLICIES
• ANTI-CORRUPTION LAW (2006)
• LAW ON REGULATING CONFLICTS OF PUBLIC AND PRIVATE INTERESTS IN PUBLIC
SERVICE (2012)
• CRIMINAL CODE (2002)
• BUDGET LAW (2011)
• LAW ON PUBLIC PROCUREMENT (2005)
• LAW ON INFORMATION TRANSPARENCY AND ACCESS TO INFORMATION (2011)
• LAW ON MONEY LAUNDERING (2013)
• GLASS ACCOUNT LAW (2014)
• NATIONAL ANTICORRUPTION PROGRAM (2016-2020)
• ANTICORRUPTION MANAGEMENT STANDARD (ISO 37001)

4. ANTI-CORRUPTION LAW
• Defines corruption
-abuse of official power for personal benefit/reward
-give an advantage or favor to others
-obtain unlawful advantage/gains from an individual or legal entity
• Defines persons under the effect of this law
-government officials
-governing persons of a company
-managing persons of government-owned/government participating entities
-managing persons of NGOs performing government functions
-governing persons and supervisory board members of Future heritage fund
• Sets out liabilities for non-criminal offences
-salary reduction, position downgrade, dismissal
-confiscation of property/income and revocation of a decision

5. CONFLICT OF INTERESTS LAW
• Private interests declaration (each year)
Conflict of interest declaration before:
-Administrative decision making or Inspection
-Imposing legal liabilities
-Managing persons/entities
-Making or negotiating agreements/contracts
• Jobs or positions to hold during or after the office
• Engage in permitted enterprise (horticulture, training, training-
tourism, business with annual income less than MNT 20 mln)
• Gifts (related/unrelated with official duties)
• Donations (public needs v technical support)
• “Written explanation” when potential conflict of interest arises

6. CRIMINAL CODE (2002)
Criminal offence:
• Giving a bribe
• Accepting a bribe
• Brokering a bribe
• Abuse of power
• Illicit enrichment
• Obtainment a reward
Punishment:
• Fines (MNT 60,000,000)
• Job/license suspension (up to 3 years)
• Confiscation of assets (when bribe level is high/very high)
• Imprisonment (up to 10 years)

7. CRIMES LAW (to be effective from July 1, 2017)
CRIMINAL OFFENCE:
• ACCEPTING A BRIBE
• DEMANDING A BRIBE
• AGREEING TO ACCEPT AN OFFER
• GIVING A BRIBE (things, property, title, service)
• PROMISE TO GIVE A BRIBE
• OFFER TO GIVE A BRIBE

8. ABUSE OF INFLUENCE/PUBLIC SERVICE
ABUSE OF INFLUENCE
• damage lawful interests of others
• unlawful involvement in business activities (damage payment
capacity and profitability)
• demand or gain an advantage (directly or indirectly)
ABUSE OF PUBLIC SERVICE
• perform official duties
• not to perform duties
• perform actions inconsistent with official duties

9. BRIBE RECEIVING AND BRIBE GIVING
• A person who undertook an obligation/s under the laws,
administrative regulations, and agreements
• Public official
• Person with political influence/exposure
• Organised group
• Public official who took a bribe through obstructive means

10. ABUSE OF “POWER OF A LEGAL ENTITY”
BREAKING LAWS, BY-LAWS AND AGREEMENTS FOR:
• personal gains/rewards by managing and executive officers
• giving an advantage to others
PUNISHMENT:
• Fines (MNT 28,000,000)
• Travel restriction (up to 3 years)
• Imprisonment (up to 3 years)

11. FOREIGN PUBLIC OFFICIAL AND INTERNATIONAL
ORGANISATION
Abuse of power by foreign public official/officer of an international inter-
governmental organisation
• fines up to MNT 14,000,000
• imprisonment up to 5 years
Taking a bribe by foreign public official/officer of an international inter-
governmental organisation
• imprisonment ( 5-12 years)
Giving a bribe to foreign public official/officer of an international inter-
governmental organisation
• fines (up to MNT 14,000,000)
• travel restriction (up to 5 years)
• imprisonment (up to 5 years)

12. PUNISHMENT TYPES UNDER THE CRIMES
LAW
• No appointment in public office (up to 8 years)
• Fines (up to MNT 80,000,000)
• Travel restriction (up to 5 years)
• Imprisonment (up to 12 years)
Severe penalties if committed by a person:
-with political influence
-organized group
-by using restrictive/obstructive methods

13. LESSENING THE PUNISHMENT
• To lessen the penalty
Bribe giver voluntarily disclosed the giving a bribe
• No penalty
If a bribe was given for obtaining government service having no other
options due to OBSTRUCTIONS/RESTRICTIONS imposed

14. LEGAL GAPS
• Confiscation: no provision to confiscate property/income if the
damage is little/moderate (current Criminal Code)
• No confiscation of assets: in the Crimes Law to be effective
• Restriction on administrative decision making: such restriction does
not apply to government owned/locally owned legal entities
• Conflicts of interest: no replacement of a person to perform duties if
no other person is available or the same person is high skilled)
• Donation (permitted for training/technical support and like purposes,
permitted for health, education, and cultural services of the
government)
• Gifts (permits gifts amounting a monthly salary, or about 3 months
salary a year from one source)

15. LEGAL GAPS
• Financial assistance (permitted or unpermitted)
• Fines: lower than the actual value of a bribe
• Corrupt dealing by/transactions with agents: not clearly
regulated
• Protection of informers: little or none
• Bribery committed outside the country: Punish if not
punished in the other jurisdiction
• Party/campaign funding –not regulated under corruption
laws

16. PRIVATE PERCEPTIONS OF CORRUPTION
(2016 Asia Foundation survey, 380 Mongolian companies)
• Existing legal environment not effective - 39.8%
• Government efforts to eradicate corruption not at all
effective - 44.5%
• Political and family connection influence public tender
results -53%
• High taxes, access to credit, and obtaining/renewal of
licenses - biggest obstacles for business
• A lot of corruption in public sector - 47.9%
• A lot of corruption in private sector (12.4%)

17. RECOMMENDATIONS
• Compliance program
• Awareness raising
• Ethics and integrity code
• Risk evaluation
• Understand a sectoral/industry risk
• Internal audit
• Understanding relevant laws

18. Thank You