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TREASURY LAW

Unofficial translation
TREASURY LAW
Chapter One
General provisions
Article 1. Purpose of the Law
The purpose of this Law is to regulate
relations concerning protection of the treasures of
Mongolia, establishment, protection and enrichment of state treasury, issuance
of assets into
circulation from this treasury and disposal of it.
Article 2. Legislation on treasury
The legislation on treasury
is comprised of the Constitution of Mongolia, the current Law,
Banking Law, Foreign currency regulation Law, Law on protection of
historical and cultural
monuments, Mineral Law, and all other relevant legislative acts.
Article 3. Definition of the terms
Terms
used in this Law shall have the following meanings:
1/ "treasure" shall mean precious metal and gemstone in any condition such as
raw material,
alloy, chemical compounds, and historical and cultural monument;
2/ "precious metal" shall mean gold, silver, platinum
and its group metals, such as palladium
iridium, rhodium, ruthenium, osmium
3/ "gemstone" shall mean diamond, ruby, emerald, sapphire
and pearl.
4/ "treasury" shall mean accumulated treasure which is collected, stored, protected and used by
the Bank of Mongolia on
behalf of state.
5/ "natural product" shall mean precious metals found with more than 400-gr weight, or more
than 3.0 X 2.0 cm size,
and smaller than those but with unusual natural shape or natural
formation.
Article 4. Treasury, its classification
1. Ownership
of treasury shall be state.
2. Treasury shall be classified into primary and circulation treasury.
3. Primary treasury shall consist
of permanent and temporary parts. Where:
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1/ permanent part shall include treasure that is prohibited to sell and transfer. This
treasure of permanent parts shall be undivided property of Mongolia.
2/ temporary part shall include precious metals refined by international
standard,
decorated and polished gemstone, historical and cultural monument and reserved coins
made of precious metal that are transferred
to treasury according to decision of Great
Hural
4. Circulation treasury shall relate to the refined and nonrefined precious metals
to put into
circulation for needs of production of business entities that are engaging in the precious metal-
working industry, research
work, and treatment, decorated and polished gemstone made of
those, natural product of gemstone such as pearl and all other treasure
kept by the Bank of
Mongolia except paragraph 3 of this article.
Chapter Two
State power on treasury
Article 5. Power of Great Hural
Great Hural shall have the following powers concerning treasury:
1/ shall decide required species and amount of permanent and temporary
part of primary
treasury
2/ shall approve a report of the annual income and expense of primary treasury.
3/ shall decide an amount
of annual expense of circulation treasury.
4/ shall make a decision to sell and purchase to the foreign parties precious metals and
gemstone to and from the primary treasury.
5/ shall decide minimum amount of the Bank of Mongolia purchase of precious metals
and
gemstone mined for state treasury
6/ other power stated in legislation
Article 6. Power of government
Government shall have the following
powers concerning treasury:
1/ shall jointly make a decision on sale of precious metals and gemstone from the
circulation treasury
with the Bank of Mongolia within an amount decided by Great
Hural.
2/ other power stated in legislation
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Article 7. Powers of the
Bank of Mongolia
The Bank of Mongolia shall have the following powers on treasury:
1/ shall conduct accounting of treasury movement;
2/ according to law and decision of Great Hural, shall raise income of primary and
circulation treasury and provide expenditure.
3/ shall refine abroad precious metals of circulation treasury by international standards
and effectively locate placement at foreign
financial institutions and banks
4/ shall represent an opinion about selling precious metals and gemstone abroad to and
from the
primary treasury and raising reserve by purchasing precious metals from
abroad, to Great Hural and implement its decision made.
5/ shall approve
and follow regulation of the treasure price setting of treasury.
6/ other power stated in legislation
Chapter three
Conducting activities
and organization of treasury
Article 8. Conducting activities of treasury
Conducting activities of treasury shall include activities
to store, save, purchase, sell, refine,
locate, issue and organize exhibitions, raise, protect and repair treasure accumulated in
the
treasury.
Article 9. Organization
1. The Bank of Mongolia shall conduct activities of treasury. There shall be a unit in the
its
organizational chart to conduct activities stated in the article 8 of this law and its activities shall
be directly managed by
Governor of the Bank of Mongolia. .
2. Governor of the Bank of Mongolia shall approve organization, vacancy, and salary fund of
the
unit to conduct activities of treasury to be included in the expense budget of the Bank of
Mongolia, appoint and dismiss its director.
Article 10. Income of treasury
Income of treasury shall consist of treasure sold, gifted and donated by foreign and domestic
banks,
institutions, citizens, also treasure alienated, requisited, deposited and paid according to
legislation
Article 11. Expense of treasury
According to approved balance of income and expense, expense shall be issued by following
regulation:
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1/ shall sell precious metals
and gemstone to entities, institutions, and citizens by price
set by the Bank of Mongolia taking world market price into account.
2/ shall sell precious metals and gemstone abroad according to decision made by Great
Hural
3/ shall amortize expenses that have
occurred during process of decorating, refining and
polishing
Article 12. Accounting of treasury
1. For precious metals, goods made
of gemstone and historical cultural monument in the
treasury, private documentation shall be registered with certificate issued by
professional
advisory board of the some institution of state administration, which deal with cultural problem.
The Bank of Mongolia
shall evaluate and register these treasures in the accounting-information
database according to the approved regulation.
2. Joint
accounting of treasury shall be secret material of state and Government and the Bank of
Mongolia each shall keep one copy of this
accounting.
3. Gold, platinum, and its group metal shall be weighed by precision of milligram, while white
silver by precision of
gram, respectively
4. When precious metals, gemstone, goods made of those, and historical and cultural monument
is moved from one
registrar to another, registration, weighting, matching and hand over process
shall take place one by one under control of administration.
5. The Governor of the Bank of Mongolia shall approve regulation of treasury accounting,
storage and control.
Article 13 Treasury
storage
1. All treasure in the treasury shall be stored in the specially equipped store and box, protecting
their quality.
2. Service
related to decorating, repairing, polishing, sating and establishing normal condition of
precious metals, goods made of gemstone,
and historical and cultural monument shall be
constantly executed according to timetable and regulation approved by the Governor
of the
Bank of Mongolia.
Article 14. Regulation on movement and location of treasure to from treasury
1. Movement, location and transport
of precious metals, gemstone, goods made of those,
historical and cultural uniquely valuable monument to, from treasury shall be
performed with
special safeguard under control of unit of related institution.
2. Government shall approve regulation of special
safeguard and control stated in the paragraph
1 of this article.
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/Paragraph 2 of this article 2 was edited by law of April 17,
1995 /
Chapter four
Powers of treasure owner
Article 15. Power and responsibility of entities, institutions and citizens
1. Owners
of treasure who are entities, institutions and citizens of Mongolia shall be
responsible for the following:
1/ this paragraph had been canceled by law of June 5, 1997
2/ Precious
metals, gemstone, and goods made of those to be sell to treasury shall be
assayed and warranted by the control unit of Ministry of
Finance.
3/ if own historical and cultural uniquely valuable monument made of precious metals
and gemstone, shall keep their original
in the treasury. Governor of the Bank of
Mongolia and Minister of Culture shall jointly approve list of those that is required to
store.
2. Entities and citizens shall have right to agree and demand price of treasure to be sold and kept
to treasury.
Article 16.
Power and responsibility of the Bank of Mongolia
1. The Bank of Mongolia shall be responsible for the following concerning treasury:
1/ shall pay price of items purchased for treasury
2/ shall represent amount of treasure raising treasury, annual plan and balance
of income
and expense of current assets and annual minimum amount of treasure to purchase to
Great Hural and implement its decision
made.
3/ shall organize activities to protect and store treasury and control its performance.
4/ shall provide treasury unit with
means of communication and security, other tools,
equipment, spare parts, chemical substance needed to measure, weigh, assay, polish,
store, protect, and transport
2. The Bank of Mongolia shall have the following powers concerning treasury:
1/ shall purchase treasure
for treasury and sell allowed amount of those from circulation
treasury.
2/ shall produce memorable coin made of precious metals
according to legislation and
issue exhibition according to related regulation for very important events such as
Mongolian and internationally
significant anniversary.
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Article 17. Safeguard of treasury
1. State shall safeguard treasury. Governor of the Bank of Mongolia
and Head of General
Department of Police shall jointly approve regulation of treasury safeguarding.
2. Police department shall fulfill
safeguard of treasury based on agreement made by the Bank of
Mongolia
Chapter five
Other
Article 18. Supervision
1. Governor of the
Bank of Mongolia and its audit unit shall supervise and inspect treasury
position and its conducting activities
2. The Bank of Mongolia
shall register residual of treasury annually and introduce its report to
Great Hural
3. General Department of Police shall control
safeguarding treasury.
Article 19. Liability imposed for the violation of the legislation
If a breach of the legislation on the treasury
does not constitute a criminal offence, the following
administrative liability shall be imposed by a state supervisor and state foreign
currency
supervisor of the Bank of Mongolia:
1/ for violation of regulation of receiving, storing, safeguarding, moving, locating
and
transporting treasure of treasury, a fine of 2000-40000 togrog for citizen, 20000-50000
togrog for officer
2/ for violation of
paragraph 4 of article 12 of this law, a fine of 10000-50000 togrog for
citizen, 30000-60000 togrog for officer
3/ this paragragh
was canceled by law of June 5, 1997
4/ this paragragh was canceled by law of June 5., 1997
Article 20. Entering into force
This law
shall become effective on the January 1, 1995
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