Mongolia officially launched its participation in the Opening Extractives programme on 19 May 2022. The hybrid event, which was attended by more than 30 in-person and online participants, follows a new Mongolian law on the disclosure of public information that became effective this month. The law requires companies to disclose beneficial ownership information, including all beneficial owners of legal entities.
Company ownership is a matter of public interest for Mongolia’s mining sector, which plays an important role in the country’s economy. The sector – which is mainly centred around gold, copper, coal and iron – accounted for 22% of Mongolia’s GDP, 57% of total industrial production, 42% of total investments and 26% of the national budget revenue in 2020. Mongolia also has a small oil and gas sector, however these resources remain largely underdeveloped.
Ms Erdenechimeg, Governance Manager at Open Society Forum, pointed out that while beneficial ownership data is disclosed in Mongolia, there is need for more transparency and adherence to the recommendations of the Financial Action Task Force (FATF) and the EITI Standard. She further emphasised that beneficial ownership transparency helps to prevent conflicts of interest and can help ensure compliance with anti-corruption requirements. The Opening Extractives programme will help Mongolia’s government to improve the availability and use of beneficial ownership data for effective governance in the country’s extractive sector.
On behalf of the State Secretary of the Mongolian Ministry of Mining and Heavy Industry (MMHI) and Head of the Mongolia EITI Multi-Stakeholder Group, Mr Batbold, Chief of Research and Investment Department, remarked that Mongolia has made strides in beneficial ownership. The General Authority for State Registration (GASR) system has been used to implement a legal requirement for all companies to identify and report their beneficial owners in 2020. He further highlighted that the programme would assist in raising beneficial ownership awareness for government agencies, civil society and companies to access comprehensive and reliable information on the ultimate owners of extractive industry companies. Publishing information on beneficial ownership would support responsible investment in Mongolia and increase trust and accountability for citizens and governments.
The open panel discussion during the launch gave a platform for Mongolia government ministries, civil society and company representatives to discuss how the programme can be effective for beneficial ownership transparency in the country. Representatives from the MMHI, the General Department of Taxation, Mongolian National Audit Office and civil society groups – including the Publish What You Pay Coalition and Transparency International – gave insights on how the programme can assist in the collective efforts of government, civil society and industry stakeholders to enhance beneficial ownership transparency through data-use initiatives. All agreed on the contribution of the programme to strengthen natural resource governance.
The key next step to follow this official launch, according to Mr Batbold, is for Mongolia to implement its beneficial ownership roadmap. The country wishes to strengthen stakeholder engagement and coordination on legislative matters, and improve data collection, due diligence, and public oversight of beneficial ownership in the extractive sector.
Event: Beneficial ownership transparency and why it matters for extractive companies
As part of our Opening Extractives programme, we invite you to join a roundtable discussion on beneficial ownership transparency on Thursday, 24 February at 8:00 CET. The aim is to engage extractive companies in a conversation about the importance of beneficial ownership transparency to companies, the challenges of disclosing beneficial ownership information, and how these are being addressed at the global and country levels.
Published: 16 February 2022
Opening Extractives: Registering the beneficial owners of oil, gas and mining companies
Open Ownership and the Extractive Industries Transparency Initiative, the global standard for the good governance of oil, gas and mining, are teaming up to tackle corruption and open up ownership in the extractives sector
Published: 15 April 2020