Cabinet proposes licensing of pawnshops

Ulaanbaatar /MONTSAME/ At its regular meeting, held January 25, the cabinet decided to immediately submit to parliament the bills on amending Law on Special Permit of business operations and related to it legal documents, in accordance with the law on procedure of plenary meeting of the State Great Khural (parliament). Pawnbrokers do not pay taxes given the lack of legal grounds that regulate the standards, criteria for pawn shops, ceiling of mortgage and loans. However, the pawn shops are highly demanded in Mongolia’s financial market where banks' loans have strict conditions, complex documentation processes and require prolonging due diligence term. The National Human Rights Commission and Authority for Consumer Protection and Fair Competition have reportedly been receiving from the pawnshop clients many complaints about the poor conditions of mortgage loans being allowed, poor protection and preserving of mortgaged properties. Therefore, the changes should be made to the concerning law about licensing the pawnshops, consider the initiators. The licensing procedures will be monitored by the Financial Regulatory Commission.