Ulaanbaatar
Legal period to close offshore accounts comes to end
Society
Ulaanbaatar /MONTSAME/ Law on Regulation and Prevention of Conflicts of Interest for Public Service was amended on 13 April 2017 adding an article which prohibits public officers who file their income or property declaration under the Anti-Corruption Law and their affiliates from holding bank accounts, owning movable or immovable property, or establishing legal entities by contributing as a shareholder in the countries and territories designated as offshore financial territories during the tenure. In compliance with the law the Government approved resolution N224 on August 31, 2017 to designate 49 countries and territories as offshore financial territories. The public officer who has opened a bank account, has placed a monetary fund in the account, has owned a movable or immovable property in the Offshore Countries and Territories are obliged to withdraw the money from the account, close the bank account, to sell, transfer, or depose the ownership of movable or immovable property and liquidate the legal entity in which he/she holds a share or sale, transfer, terminate the ownership right in such legal entity by January 4, 2018 and report it to the Independent Authority Against Corruption (IAAC) within February 4.
This list of the Offshore Countries and Territories should be updated from time to time depending on the list designating offshore territories as approved by international economic, banking or financial organizations. The Government updated the list with its resolution N326 including 15 countries in the list such as the United Arab Emirates, Botswana, Brunei, the Republic of Malta, Ireland, Curacao, Luxembourg, Macao, Malaysia, Monaco, Montserrat, the Independent State of Samoa, Singapore, Hong Kong, and Switzerland.
For bank account holders or owners of movable or immovable property in the Offshore Countries and Territories in the updated list, approved by the resolution N326, they should fulfill the abovementioned obligations within March 6, and declare to the IAAC within April 6, reported the IAAC.
B.Batchimeg
