Georgia’s Anti-Money Laundering Regulations: What You Need to Know
The Georgian government has implemented strict regulations to combat money laundering and terrorist financing. In this article, we will outline the key requirements for businesses operating in Georgia.
Proof of Identity and Address
In Georgia, the following documents are considered proof of identity:
- Identity card
- Passport
- Driving license
For address verification, the following documents are accepted:
- A current utility bill (issued no more than three months ago)
- Government-issued document containing the end-user’s name and address
- Bank statement (not older than three months) containing the end-user’s name and address
Timing of Verification
Identity verification is not a one-time process, but rather a recurring requirement. Businesses must verify their customers’ identities in multiple instances, as recommended by regulatory authorities.
The timing of verification depends on the business’s requirements and its relationship with Shufti Pro. For example:
- Identity verification should be performed when onboarding a new customer
- Identity verification is also required for transaction data above monetary thresholds defined in Georgia’s regulations
Politically Exposed Persons and Enhanced Due Diligence
Businesses operating in Georgia are required to identify Politically Exposed Persons (PEPs) and individuals who hold public office or exhibit a higher risk profile. Shufti Pro offers an AML Screening service that screens individuals’ ID attributes against global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
The service highlights the category of the PEP based on the degree of risk they pose and any immediate family members or close associates.
Reliance on External Services
Georgia’s regulations allow businesses to seek external services for due diligence. However:
- Businesses remain liable for maintaining all compliance and fulfilling AML and KYC obligations
Record Retention
Businesses operating in Georgia are required to retain data for not less than five years as part of their AML and KYC obligations. In cases where this information is processed, collected, and managed by a relevant third-party service provider, businesses must:
- Collect all necessary information without undue delay
In conclusion, Georgia’s anti-money laundering regulations require businesses to implement robust due diligence measures, including identity verification, address verification, PEP screening, and record retention. Failure to comply with these regulations can result in severe penalties and reputational damage.