Member of Parliament J.Aldarjavkhlan proposed amendments to the Law on Political Parties and formally submitted a draft bill to the Speaker of the Parliament, D.Amarbayasgalan. The proposed changes seek to address practical challenges that have emerged since the law came into force on January 1, 2024.

According to the legislator, the current version of the law which mandates that each political party operate a single bank account, has caused significant operational delays and complications in financial settlements and cash flows within party structures. These logistical hurdles have reportedly hindered compliance with requirements for financial transparency and public disclosure of party income and expenditures.

The bill's initiator argues that the restrictions have weakened the legal framework that ensures citizens’ rights to engage effectively in party activities, as guaranteed by the Constitution of Mongolia. Additionally, the law's provision linking state funding to the number of parliamentary seats while capping alternative income has created financial instability for political parties, limiting their ability to operate sustainably and grow internal resources.

Another concern raised is the requirement for centralized financial reporting, which obliges parties to consolidate financial statements from all affiliated organizations. This has not only complicated accounting procedures but also led to potential breaches of the legal thresholds for political funding.

To resolve these issues, the draft law proposes targeted amendments to Subsections 26.7, 27.8, and 35.4 of the Law on Political Parties. The amendments are designed to ease financial restrictions, streamline party accounting processes, and reinforce the constitutional right of Mongolian citizens to freely associate and participate in political life.

The proposed changes will now be reviewed by relevant standing committees before being debated in a full session of the parliament.