Director of Payment Systems Department: Mr. Anar E.
With the aim of promoting financial stability and monetary policy, the Bank of Mongolia, as a central bank, plays a key role in the development of the national payment system that is in line with international standards as well as in the oversight of the payment system operators, participants, and service providers.
The Payment Systems Department of the Bank of Mongolia is instrumental in ensuring smooth and efficient functioning of the national payment system and it consists of the following three divisions, each with specific functions:
Policy and Operation Division
- Develops and defines policies, procedures, rules and regulations for the operation of the payment system in accordance with BIS principles, recommendations, and standards for payment systems;
- Issues regulations or rules governing the internal control mechanisms, including administrative and customer care procedures, and setting the operational and interoperability requirements for the payment service providers, system operators and entities that have been licensed to engage in activities related to the provision of payment services;
- Formulates rules, regulations, and standards regarding conditions and requirements for the entities that have been licensed to participate in the payment system as well as their activities;
- Ensures stable, smooth, reliable and efficient operation of the RTGS system for high-value transactions and the SWIFT system for international settlement network, without interrupting payments;
- Develops and prepares guidelines, recommendations, methodologies and other documents addressing potential risks that may arise in the national payment system and its management;
- Organizes the annual meeting of the National payment system council, approves the work plan of the council based on the decisions made during the meeting, and ensures its implementation by cooperating with the stakeholders;
- Cooperates with direct and indirect participants of the payment system, central banks of other countries, and other international institutions on the payment system.
- Oversees the national payment system and its operation by conducting on-site inspections, preparing oversight reports, taking relevant measures, and making recommendations and conclusions in order to ensure overall effectiveness and integrity of the payment systems in the country;
- Ensures that payment service providers and operators comply with all the regulations and rules issued by the Bank of Mongolia;
- Issues relevant licenses, as stipulated in the Article 10.1 of the Law on National Payment System, and oversees the activities of the payment service providers and operators;
- Assesses the central securities depository system and the activities of remittance in accordance with the principles and methodologies developed by international organizations; identifies gaps, and ensures that necessary actions are taken to fix it, if necessary;
- Ensures that equipment, hardware and software, confidentiality, security, and risk management procedures of the payment service providers and operators comply with the requirements stated in the laws, rules and regulations; assesses compliance with laws and standards, and takes relevant measures to eliminate detected violations, if any;
- Prepares reports and surveys related to the operation of the payment system, publishes annual payment systems oversight reports, and makes them available to the public.
National Electronic Transaction Center
- Ensures stable, uninterrupted, reliable and efficient operation of the low-value interbank payment system and integrated payment card network;
- Stores information related to interbank settlements and takes immediate action in the event of any abnormalities;
- Maintains and monitors the confidentiality of interbank transactions and establishes standards for interbank settlements;
- Processes low-value interbank transactions as well as payment card transactions, calculates the multilateral net positions, and executes government transactions;
- Provides maintenance and repair services for equipment and software used to operate low-value interbank payment systems and integrated card networks;
- Resolves and takes necessary action to remedy the problems occurred in the card network;
- Incorporates the assessment and recommendations of international experts and payment system supervisors into the interbank payment system, and cooperates with international card organizations.