TAX AND LEGAL ALERT

Mongolia• No. 02/2022 • March 2022

Mongolia introduces Personal Data Protection

Law effective from 1 May 2022

On 17 December 2021, the Parliament of Mongolia passed the Law on Personal Data
Contact us: Protection (the “PDPL”) effective from 1 May 2022. The PDPL, once effective, will establish
Michael Ahern broader and more stringent regulatory regimes surrounding personal data in Mongolia,
Partner compared to its preceding law the Law on Personal Secrecy (1995).
Tax and Legal Services The PDPL is intended to regulate together with the Cybersecurity law (2021), Public
michael.ahern@pwc.com Information Transparency Law (2021), and Electronic Signature Law (2021) (each effective
from 1 May 2022) and create a comprehensive framework governing cybersecurity and data
Tsendmaa Choijamts privacy protection in Mongolia. We highlight the key aspects of the PDPL and its impact on
Director businesses.
Tax and Legal Services
tsendmaa.choijamts@pwc.com
Application
Munkhjargal Ragchaakhuu
The PDPL applies to all individuals, legal entities and organizations without legal status
Legal Manager
(representative offices and permanent establishments) collecting, processing, using and
Tax and Legal Services
munkhjargal.ragchaakhuu@pwc.com protecting personal data in Mongolia.

Amarjargal Batchuluun Scope of personal information and definitions

Senior consultant
Tax and Legal Services
1. What is personal data ?
amarjargal.batchuluun@pwc.com
 any information that can be used to directly or indirectly
identify a natural person including but not limited to:
o sensitive personal data;
PwC Legal LLP o first and last name;
o date and place of birth;
Central Tower, 6th floor o residential address and location data;
Suite 603, Ulaanbaatar o citizen’s registration number;
14200, Mongolia o assets and properties;
Tel : + 976 70009089 o education;
Fax : +976 11 322068 o membership; and
www.pwc.com/mn o online identifiers.

2. What is sensitive data ?

 information about the individual’s ethnicity, race, religion, beliefs, health,
communications / correspondence, genetic and biometric data, digital signature
private key, criminal record, and data concerning natural person’s sexual
orientation and identity as well as sex life.

3. Who is data subject ? 4. Who is data controller ?

 A natural person identified by the  a natural person, legal entity or organizations
above-mentioned information. without legal status that collects, processes
and uses data in accordance with the PDPL or
with the consent of the data subject.

This Alert is produced by PwC Legal LLP. The material contained in this alert is provided for general information purposes
only and does not contain a comprehensive analysis of each item described. Before taking (or not taking) any action, readers
should seek professional advice specific to their situation. No liability is accepted for acts or omissions taken in reliance upon
the contents of this alert.

© 2022 PricewaterhouseCoopers Legal LLP. PricewaterhouseCoopers Tax TMZ LLC

All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Legal LLP, which is a member firm of
PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
TAX AND LEGAL ALERT Mongolia• No. 02/2022 • March 2022

Introduced new terms and definitions (cont’d)

Data use Data collecting Data processing

Using, transferring and Obtaining (procuring), Classifying, storing,
accessing data gathering and analyzing, modifying,
registering data disposing, restoring and
combination of those
activities

Key requirements

1. Legal basis for collecting, processing and using personal data

The Law on Personal Secrecy (1995) has long been ambiguous as to whether processing personal information unless
‘legally required’ is permissible and has not clearly provided for a ‘consent’ requirement. The PDPL provides that legal
entities and organizations without legal status may collect, process and use personal data in the following cases:
• the data subject has consented;
• it is legally required to do so;
• where necessary during employment relations;
• where necessary for entry into and performance under a contract;
• where the data is already publicly available under a law; and
• where the personal data has become anonymous to be used in preparing historical, scientific, artistic and
literary works or open data and statistics.
2. Requirement for notification and consent
A written or electronic consent of the data subject is required when collecting, processing and using personal data. In
order to obtain a consent the following conditions must be notified to and agreed with the data subject:
• explicit purpose and objectives;
• data controller’s name and contact information;
• list of data to be processed, collected and used;
• duration of the data processing and using;
• disclosure, transfer and revocation conditions.
3. Transfer of personal data outside of Mongolia
Transferring personal data outside of Mongolia without a consent of the data subject is prohibited unless otherwise
provided in the law or an international treaty to which Mongolia is a signatory. Since the law does not provide exemption
to this rule of consent, an intra group transfer (transferring personal data from one group company to another in overseas)
would constitute transfer of personal data.
4. Use of data processors
Under the PDPL, a data controller is allowed to transfer the obligation to collect and process data to the data processor on
a contractual basis.
5. Data security assessment
The PDPL requires data controllers and data processors to undertake assessments to ensure data security. Data security
assessment is especially required in the following circumstances where the data is collected, processed and used through
electronic processing technology:
• in decision making process that affect the rights, freedoms and legitimate interests of the data subject; and
• regular processing of sensitive data.
6. Requirement to destroy personal data
Data controllers will need to destroy personal data if requested by the data subject (in case of illegal processing), ordered
to do so by relevant authority and as agreed under the consent form or relevant agreement. Data controllers must also
destroy personal data if the initial goal of collecting the data has completed.
TAX AND LEGAL ALERT Mongolia• No. 02/2022 • March 2022

Data subject’s rights

Right to access their Right to know whether

Right to transfer their personal data
personal data relevant information has been
collected, processed or used

Right to demand the disposal of its

data under the law Right to objection

Right to be forgotten Right to know about a

third party who receives
their personal data

Right to request to terminate process

of data collection, processing and
use Right to give or refuse to give
consent to the data controller on a
voluntary basis
Right to correct their
personal data

Right to file a complaint or comment on

Right to obtain a copy of the data
the decision made as a result of
related to them from a data controller in
processing the data etc.
a paper or electronic form

Data controller’s obligations

Key obligations of a data controller in terms of personal data protection include:

to approve and enforce to obtain the consent to explain clearly and

internal policy for data to collect data upon explicitly to the data
collection, processing identification and subject the purpose and
and use confirmation of the data grounds, right to refuse
subject to give a consent for
collecting the data

to keep records on data to receive, resolve to undertake

collection, processing and and respond to the assessments
use activities complaint of the data according to the law
subject
to be liable to the data subject,
the competent authority and a
third party under the law
to provide free copies to terminate the
to correct, change,
of data in electronic processing and use of data
dispose data at the
form at the request of upon receiving the request
request of the data
the data subject of the data subject, if it to take measures to ensure
subject and notify the
does not affect the rights information security
data subject in this
and legitimate interests of according to the law
regard
others
TAX AND LEGAL ALERT Mongolia• No. 02/2022 • March 2022

Notification and reporting requirements

Reporting obligations to National Human Rights Commission (“NHRC”)

• Data controllers must maintain a record of actions taken to eliminate a data breach and its negative
consequences. This record shall be submitted to the NHRC in January of each year.
• An assessment report shall be submitted to the NHRC and data shall be collected, processed and used
using electronic processing technology based on recommendations given by the NHRC.

Penalties

Following the adoption of the PDPL, the Infringement Law (2017) and Criminal Code (2015) have been amended. The
Infringement Law provides sanctions for various violations of the PDPL including but not limited to Illegal collection,
processing, transfer or disclosure of sensitive data. Penalty is generally a fine of up to MNT 20,000,000 for legal entities.
A data subject may file complaints to the NHRC for potential human right violations. If the data subject is not satisfied
with the NHRC’s decision, they may appeal to the courts of Mongolia.
In addition, data subjects are entitled to claim to recover damages incurred by unlawful acts of the data controller.

Further actions to be taken

Organizations are recommended to take the following measures to ensure compliance with the PDPL:
• Procure an impact assessment on data security within the organization subject to assessment regulations to
be approved by the Ministry of Digital Development and Communications;
• Conduct gap analysis to ensure compliance with the PDPL;
• Develop or revise the internal policy(s) and/guidelines covering the below matters:
• personal data collection, processing and use;
• data security;
• usage and disposal of data; and
• anonymization of data.
• Approve a form of consent, privacy statement or data collection terms and other necessary forms;
• Enter into/amend a data processing agreement with customers, vendors and other third parties where
relevant;
• Create a registration form for data incidents and maintain record of data breach incidents;
• Approve action plan/ measures to follow in case of data incidents and notification to data subject and
respective state authorities;
• Consider prohibited locations and additional requirements surrounding use of audio, video, and audio-visual
recording devices;
• Notify the privacy statement and collect consent from the data subjects; and
• Biometric data (fingerprints) collected by the data controller must be disposed by 1 May 2022.

For more in-depth discussion about the key requirements described above, non-compliance risks and any
other questions you may have about the PDPL, please do not hesitate to contact us.

For details of the Personal Data Protection Law, please visit https://legalinfo.mn/mn/detail?lawId=16390288615991

pwc.com/mn
This Alert is produced by PwC Legal LLP. The material contained in this alert is provided for general information purposes only and does not contain a
comprehensive analysis of each item described. Before taking (or not taking) any action, readers should seek professional advice specific to their
situation. No liability is accepted for acts or omissions taken in reliance upon the contents of this alert.
© 2022 PricewaterhouseCoopers Legal LLP. PricewaterhouseCoopers Tax TMZ LLC
All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Legal LLP, which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal entity.