Georgia Anti-Money Laundering (AML) and Know Your Customer (KYC) Compliance Guide

Introduction

This guide outlines the key requirements for businesses operating in Georgia to comply with AML and KYC regulations. Understanding these regulations is crucial to prevent money laundering, terrorist financing, and other financial crimes.

Section 1: Identification of Customers

1.1 Verification Methods

To verify customer identity, businesses must use reliable documents such as:

Government-issued ID
Passport
Bank statement (not older than 3 months)

1.2 Ongoing Verification

Verification is not a one-time process but rather requires multiple instances throughout the customer relationship.

Section 2: Timing of Verification

2.1 Onboarding Process

Identity verification should be performed when onboarding a new customer.

2.2 Transaction Data Involvement

In cases where transaction data is involved, identity verification should be applied as per monetary thresholds defined in Georgia’s regulations.

2.3 Higher-Risk Situations

Higher-risk situations require more frequent identity verification.

Section 3: Politically Exposed Persons (PEPs)

3.1 Determining PEP Status

Businesses must determine if their customers are PEPs or exhibit higher risk profiles.

3.2 Screening Services

Shufti Pro offers an AML Screening service to screen individual ID attributes against global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.

Section 4: Reliance on External Services

4.1 Third-Party Providers

Businesses may seek the services of a third-party provider for due diligence measures.

4.2 Data Collection

Regulations require collecting all necessary information from the third party without undue delay.

4.3 Shufti Pro as an External Service Provider

Shufti Pro acts as an external third-party service provider in this scenario.

Section 5: Record Retention

5.1 Data Storage Requirements

Businesses are required to retain data for at least 5 years as part of their AML and KYC obligations.

5.2 Liability for Third-Party Data

If the information is processed, collected, and managed by a relevant third party, businesses are liable to collect all necessary information without undue delay.